Which Option Best Explains Why Firms Develop New Ideas for Production

question 122

Multiple Choice

Which option best explains why firms develop new ideas for production techniques and product features?

• A) because they are interested in sharing their new ideas with the world
• B) because they are interested in making a profit
• C) because it will be in the social interest
• D) because doing so will make their customers happy

---

Definitions:

Gain On Bargain

The financial gain realized when an asset is purchased below its fair market value.

Fair Value

The compensation received for parting with an asset or the expenditure in transferring a liability within a calm transaction among market actors at the date of assessment.

Consideration Transferred

The total amount of assets or equity instruments that the acquirer gives up to gain control of the acquiree in a business combination.

Acquisition Date

The date on which a buyer obtains control of a target company or asset.