The Degree of a Factor's Specificity Is Directly Related to

question 9

Multiple Choice

The degree of a factor's specificity is directly related to

• A) the amount of time required to redeploy the factor to a different industry.
• B) the cost of the factor as a proportion of the long-run total cost of production.
• C) the mobility of the factor, with more mobile factors having more specificity.
• D) technology differences between two countries, with a more advanced technology resulting in more factor specificity.
• E) factor quality, with higher quality factors having a higher level of specificity.

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Definitions:

Net Sales

The amount of sales revenue remaining after deducting sales returns, allowances, and discounts.

Units-Of-Production Method

A depreciation method that allocates an asset's cost based on the number of units it produces, linking the depreciation expense to the actual usage of the asset.

Useful Life

The estimated duration of time that an asset is expected to be functional and contribute to a company's operations, used for depreciation calculations.

Depreciation

The systematic allocation of the cost of a tangible asset over its useful life, reflecting wear and tear, decay, or decline in effectiveness.