What Mechanism Assures That Producers Use Inputs Efficiently

question 162

Multiple Choice

What mechanism assures that producers use inputs efficiently?

• A)Governmental regulations determining the allocation of resources
• B)Altruism
• C)The desire for profit
• D)An innate desire to be efficient
• E)All of the responses are correct.

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Definitions:

Expensed

The act of charging a cost as an expense in the income statement in the period it is incurred.

Capitalized

Expenditures or costs that are added to the cost basis of a fixed asset on a company's balance sheet, rather than being expensed immediately.

Goodwill

An intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets.

Acquisition

An acquisition involves one company purchasing another company or its assets, often to expand its operations or enter new markets.