A Surplus Exists in a Market If

question 139

Multiple Choice

A surplus exists in a market if

• A)there is an excess demand for the good.
• B)quantity demanded exceeds quantity supplied.
• C)the current price is above its equilibrium price.
• D)All of the above are correct.

Identify the characteristics, valuation, and accounting of intangible assets.

Calculate and interpret the asset turnover ratio.

Understand the proper reporting of gains and losses from asset sales in financial statements.

Comprehend the criteria for asset recognition and capitalization of costs associated with acquisition and improvement.

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Definitions:

Marginal Cost

The rise in overall expenses incurred from manufacturing an extra unit of a good or service.

Economic Profit

The separation between total proceeds and cumulative costs, covering both explicit financial outlays and implied expenses.

Opportunity Costs

The loss of potential gain from other alternatives when one particular alternative is chosen over others.

Marginal Revenue

The supplementary income produced through the sale of an extra unit of a product or service.