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timama [110]
3 years ago
12

When producers do not have to pay the full cost of producing a product, they tend to?

Business
1 answer:
Agata [3.3K]3 years ago
6 0
When producers do not have to pay the full costs of producing a product, they tend to OVER PRODUCE THE PRODUCT BECAUSE OF A SUPPLY SIDE MARKET FAILURE.
When producers are required to pay less than their cost of production for manufacturing their products they tend to produce more products, this is because, producing more products will cost less in production costs compare to if they are required to pay the full cost of production.
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Dr Amortization Expense $3,000

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Preparation of the journal adjusting entry on December 31 to recognize the amortization.

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