The Factors That Should Be Considered in Determining the Useful

question 37

True/False

The factors that should be considered in determining the useful life of an intangible asset includes the expected use of the asset by the entity and whether the asset could be managed efficiently by another management team.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and outputs are adjustable, and all economic processes are fully adapted to any changes.

Competitive Supply

The total quantity of a good or service that is available to consumers, determined by the sum of all individual suppliers’ quantities at each price level in a competitive market.

Elasticity of Supply

An evaluation of the extent to which the amount of a good provided alters as a result of variations in its price.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded.