Which of the Following Best Explains Why Market Prices Are

question 16

Multiple Choice

Which of the following best explains why market prices are useful to a financial manager when performing a cost-benefit analysis?

• A) They can be used to determine how much an asset can be sold for.
• B) They can be used to convert different services and commodities into equivalent cash values which can be compared.
• C) They allow all commodities and services to be assigned a fixed and unchanging value.
• D) They can be evaluated to determine whether the market in which the manager exchanges goods and services offers true value.

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Definitions:

Affinity

A natural liking for or attraction to a person, place, thing, or idea, often because of perceived similarities or shared characteristics.

Altruistic

Motivated by or showing concern for the well-being of others, often characterized by selfless actions or behaviors that benefit someone else.

Validation

The process of confirming that something is based on truth or fact or meets a particular standard or requirement.

Personal Utility

Personal Utility reflects the personal value or benefit an individual derives from using a product or service, based on their unique needs, preferences, or satisfaction.