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NEW QUESTION 37
Which of the following items can be found in the "Operating Section" of an indirect method cash flow statement? (Select all that apply.)

A. Depreciation and amortization amountsB. Cash paid in business combinationC. Purchases of property and equipmentD. Issuance of common stockE. Changes in inventory and accounts payable

Answer: A,E

 

NEW QUESTION 38
Why are prices typically higher when a firm has monopoly power than when firms are perfectly competitive?

A. A monopolist cannot sustain profits without expanding production.B. Monopolies are profit maximizing, while perfectly competitive firms are not.C. A competitive firm has less incentive to keep prices high on inframarginal customers.D. Competitive firms do not have enough market power to produce where marginal revenue equals marginal cost.

Answer: C

 

NEW QUESTION 39
An individual has recently inherited an antique car and decides to sell it via an auction. When the seller brings the car to an auctioning service, the auctioneer asks if it should be sold via an English (open outcry) auction, a Vickrey (sealed second-price) auction, or a sealed first-price auction. Which type of auction will result in the highest sale price?

A. An English auctionB. A Vickrey or an English auction, both of which will result in the same sale priceC. All three auctions types result in the same sale priceD. A sealed first-price auction

Answer: C

 

NEW QUESTION 40
A company that does business in two neighboring countries is considering setting different prices for its product in each market. Which of the following factors should it NOT consider when trying to predict whether this pricing structure will be effective?

A. Whether the product can be ordered onlineB. Whether customers' willingness to pay is correlated with geographyC. Whether there are tax holidays in the two countriesD. Whether the product is available in digital form

Answer: C

 

NEW QUESTION 41
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