Which of the Following Is Not a Capital Expenditure

question 1

Multiple Choice

Which of the following is not a capital expenditure?

• A)Advertising expenditures to introduce a new product line
• B)Sales tax paid in conjunction with the purchase of new machinery
• C)Installation of elevators to replace escalators
• D)An amount paid to acquire a patent with a remaining life of only three years

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Definitions:

Linear Demand Curve

A graphical representation showing a straight-line relationship between the price of a good and the quantity demanded.

Marginal Revenue

The increase in total revenue resulting from selling one additional unit of a product or service.

Elastic Portion

The elastic portion of a demand or supply curve represents the range where the quantity demanded or supplied responds significantly to changes in price.

Revenue Curves

Graphical representations showing the relationship between different levels of output or sales and the total revenue earned by a company.