Which of the Following Explains Why It Is Typically Easier

question 3

Multiple Choice

Which of the following explains why it is typically easier tomaintain a cartel in a natural resource than in a manufacturedgood?

• A)Natural resources are usually more valuable than manufacturing goods.
• B)Natural resources are only found in certain places.(True Answer )Correct
• C)Manufacturing goods are hard to replace.
• D)Supply of natural resources tends to be more elastic than supply of manufacturing goods.

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Definitions:

Weighted Average Method

A cost accounting method that calculates the cost of goods sold and ending inventory based on the weighted average cost of all items available for sale.

Lotions and Cosmetic Manufacturer

A type of business that specializes in producing health and beauty products, including creams, lotions, and makeup.

Job Order Cost System

An accounting system used to track the costs related to a specific job or batch of goods.

Process Cost System

An economic tracking system utilized for attributing costs to analogous products manufactured in large quantities and in a steady flow.