Suppose a Firm Purchases New Equipment to Replace Worn-Out Equipment

question 128

Multiple Choice

Suppose a firm purchases new equipment to replace worn-out equipment at its factory. This purchase of new equipment is considered

• A) durable consumption goods.
• B) inventory investment.
• C) gross private domestic investment.
• D) none of the above.

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Definitions:

Marketing Mix

A set of actions, or tactics, that a company uses to promote its brand or product in the market, typically encapsulated by the four Ps: Product, Price, Place, and Promotion.

Warranties

Legal guarantees provided by manufacturers or sellers assuring the quality and reliability of a product and promising repair or replacement within a certain period in the event of a defect.

Guarantees

Formal promises or assurances, typically in writing, that certain conditions will be fulfilled, especially relating to the quality or durability of a product.

Good

An item or product that is produced or manufactured to fulfill wants or needs.