If a Publishing Company Purchases Faster Computers to Speed Up

question 152

Multiple Choice

If a publishing company purchases faster computers to speed up word processing,

• A)the marginal product of its editors will increase, which will shift the demand for editors to the right
• B)the marginal product of its editors will increase, which will shift the demand for editors to the left
• C)the wages of its editors will increase, which will shift the demand for editors to the right
• D)the wages of its editors will decrease, which will shift the demand for editors to the right
• E)the supply of editors will decrease

---

Definitions:

Pre-acquisition Equity

The equity value of a company before it is acquired by another firm, used to assess the financial position prior to the acquisition.

Multiple Consolidation Method

A financial accounting approach used to combine the financial statements of multiple entities within a corporate group, considering complex ownership structures.

Multiple Consolidation Method

A technique in accounting that allows for the combination of financial statements from different entities within a group, through methods such as equity or proportional consolidation.

Revaluation Approach

A method of accounting that involves periodic updating of the carrying value of an asset or liability to its current market value.