Which of the Following Is(are)a Difficulty in Determining Current Market

question 45

Multiple Choice

Which of the following is(are) a difficulty in determining current market values when determining the value of fixed assets?

• A) There is an absence of active markets for many fixed assets.
• B) It is difficult to identify comparable assets currently available in the marketplace to value assets in place
• C) It is difficult to make assumptions about the effects of technology and other improvements when using the prices of new assets currently available on the market in the valuation process.
• D) All of the above.

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Definitions:

Consumer Surplus

The discrepancy between consumer willingness to pay a total amount for a product or service and the amount they really do pay.

Consumer Surplus

The difference in the total amount consumers are predisposed and financially prepared to pay for a good or service versus their actual expenses.

Normal Good

A good for which demand increases as consumer income rises, and decreases when consumer income falls, all other factors being constant.

Decrease in Income

A reduction in the amount of money received by an individual or entity, which can affect consumption and saving behaviors.