Which of the Following Is Not Used in the Calculation

question 143

Multiple Choice

Which of the following is not used in the calculation of the accounting rate of return?

• A)Additional revenues generated by the investment
• B)All additional operating expenses
• C)Amount of the initial investment
• D)Present value of an annuity factor

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Definitions:

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar but not identical, allowing for competition on factors beyond price.

Monopolist

A monopolist is an individual or entity that holds exclusive control over the supply or trade in a commodity or service, thus being able to significantly influence or set prices.

Perfect Competitor

A firm that operates in a perfectly competitive market, characterized by selling a homogenous product and having no control over the market price.

Output

In economics, output refers to the total amount of goods and services produced by an economic system or entity.