The Use of a "Replacement Cost" Definition of "Market" Is

question 459

Multiple Choice

The use of a "replacement cost" definition of "market" is based on the assumption that

• A)a decline in an item's replacement cost results in a decline in its selling price.
• B)prices will fall in the same proportion as input costs fall.
• C)replacement cost is appropriate for all situations.
• D)using "net realizable value less a normal profit margin" will arbitrarily shift profits from one
• Period to another.

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Definitions:

Fertility Rate

The average number of children born to a woman over her lifetime within a population.

Population

A group of individuals of the same species living in the same area and capable of interbreeding.

Survivorship

The probability that a given individual in a population or cohort will survive to a particular age; usually presented as a survivorship curve.

Species

A group of organisms sharing common characteristics and genetic heritage, capable of interbreeding and producing fertile offspring under natural conditions.