Which Is a True Statement About the REA Data Model

question 4

Multiple Choice

Which is a true statement about the REA data model?

• A) The REA data model classifies entities into three distinct categories.
• B) The term REA is an acronym that stands for resources, entities, and agents.
• C) Using an REA data model is not helpful when creating an R-E diagram.
• D) The "E" in the REA data model stands for things that have an economic value to the organization.

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Definitions:

Demand Curve

A visual diagram that illustrates how the quantity of a product demanded by buyers correlates with its price.

Marginal Revenue Curve

A graphical representation showing the additional income generated from the sale of one more unit of a good or service.

Average Variable Cost

Variable expenses, which fluctuate based on production volume, per unit of output.

Long-run Equilibrium

A state in which all aspects of the market, including supply and demand, production capacity, and price levels, are in balance and expected to remain so.