Express the Following Income Statement Information in Common-Size Percentages and in Trend

question 140

Essay

Express the following income statement information in common-size percentages and in trend percentages using 2016 as the base year.

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Definitions:

External Cost

Costs that are not borne by the parties involved in an economic transaction but by other members of society.

Efficient Price

A price that reflects all available information and makes the best use of resources, minimizing waste and maximizing value.

Market Output

The total quantity of goods and services produced and supplied by firms in a market at a given price level and time period.

External Benefit

A positive effect experienced by individuals or groups who are not directly involved in an economic transaction or activity.