Prices Tend to Be More flExible When There Are Only

question 243

True/False

Prices tend to be more flexible when there are only two or three rival firms rather than a large
number of sellers in the market.

---

Definitions:

Economic Life

The estimated period over which an asset is expected to be economically usable by one or more users, with profitability considered.

Residual Value

The estimated value that an asset will realize upon the end of its useful life, often used in calculating depreciation.

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.

FASB

The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards in the US.