How Is Scarcity Related to Competition

question 68

Multiple Choice

How is scarcity related to competition?

• A) Competition is an effect of scarcity.
• B) Scarcity is an effect of competition.
• C) Both scarcity and competition are effects of a rationing device.
• D) Both scarcity and competition are effects of opportunity cost.
• E) Scarcity produces disutility and competition produces utility.

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Definitions:

Tangible Assets

Physical assets that have a form you can touch or handle, like buildings, machinery, and land.

Acquirer

The entity that obtains control of another entity (acquiree) in a business combination, typically through the purchase of its equity interests or assets.

Negative Goodwill

Occurs when the price paid for an acquisition is less than the fair market value of its net tangible assets, often recognized as a gain in the acquirer's financial statements.

Consolidated SFP

Consolidated Statement of Financial Position; a financial statement that presents the total assets, liabilities, and equity of a parent company and its subsidiaries as one single entity.