Regulators Often Raise Prices Instead of Lowering Them

question 68

Multiple Choice

Regulators often raise prices instead of lowering them.This is designed to

• A)prevent the exit of competitors.
• B)protect the consumer from cheap products.
• C)ensure high-quality products.
• D)ensure workers are adequately paid.

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Definitions:

Gain on Disposal

The profit earned from selling a capital asset for more than its book value.

Straight-line Method

A method of calculating depreciation of an asset, dividing the difference between its cost and salvage value by the total number of years it is expected to be in use.

Salvage Value

The expected financial return on an asset at the time of its disposal after its serviceable life has concluded.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.