Guidelines Rules of Thumb) Are Developed From

question 163

Multiple Choice

Guidelines rules of thumb) are developed from:

• A) Past experience and relations between financial items.
• B) Relations between financial items.
• C) Past experience.
• D) Analysis of competitors.
• E) Industry statistics.

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Definitions:

Marginal Costs

The amount spent to produce a further unit of a good or service.

Deadweight Loss

A loss of economic efficiency that can occur when equilibrium for a good or service is not achieved or is not achievable.

Coefficient Of Monopsony

A measure indicating the degree of market power held by a single buyer in a market.

Elasticity Of Supply

A measure of how much the quantity supplied of a good responds to a change in the price of that good, with higher elasticity indicating a greater response.