Technological Change

question 264

Multiple Choice

Technological change

• A) usually requires an investment in a new plant.
• B) is implemented in the short run.
• C) almost always increases the costs of production.
• D) almost always increases the variable costs of production.
• E) cannot help a firm to earn an economic profit in either the short run or the long run.

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Definitions:

Income Statement

A financial report that shows a company's revenues and expenses over a specified period, culminating in the net profit or loss for that period.

Future Benefit

The expected benefit that will be derived from an investment or action in the future, often used in cost-benefit analyses to evaluate potential projects or investments.

Non-posting Account

A non-posting account is an account used in accounting software for transactions that affect reports or balances without affecting the general ledger.

Accounting System

A systematic process of recording, measuring, and communicating financial information about economic entities.