It Is Efficient to Increase the Output of Computers If

question 7

Multiple Choice

It is efficient to increase the output of computers if

• A)society considers the extra computers more valuable than other goods foregone to produce the computers.
• B)the opportunity cost of more computers is greater than their marginal utility.
• C)computer production can be increased only if production of other goods is decreased.
• D)the price of the computers is equal to their average cost.

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Definitions:

Significant Influence

A level of control in an investment relationship, generally assumed to exist if the investor holds 20% to 50% of the voting stock of the investee company.

Outstanding Voting Common Stock

Shares of common stock that are held by investors, excluding those owned by the company itself, which have voting rights.

Amortization

The process of spreading the cost of an intangible asset over its useful life.

Inventory Costing

Methods for assigning costs to inventory and to the cost of goods sold, such as FIFO (First-In, First-Out) or LIFO (Last-In, First-Out), impacting financial statements.