The statement
can be categorized as "True".<span>
</span>
The market for lettuce
does exhibit the two primary characteristics that define a perfectly
competitive market. One of them is that it contains various buyers and
sellers and the Second one is that there are no barriers to entry or
to exit.
Answer:
To capitalize, we must consider the following aspects:
1. Assets that meet the qualifications
To qualify as capitalization of interest, the asset must have a period of time to prepare it for use.
2. Capitalization Period
The capitalization period is the period of time in which interest must be capitalized which starts when the following three conditions occur.
- Expenditures for assets have been issued.
- Activities needed to prepare assets for use are ongoing.
- Interest costs have been incurred.
3. Amount to be capitalized.
The amount of interest to be capitalized is limited to the lowest actual cost of interest incurred during the period or avoidable interest. Avoidable interest is the number of interest costs during the period which theoretically can be avoided if the expenditure to buy assets is not carried out.
<span>A more efficient means of processing algae to produce an anticancer drug is discovered. As a result, the supply curve for the drug will shift to the right, decreasing the price of the drug. Because there was a discovery for a new production method the price drops to reflect the changes. Due the increase of production the price going down will now allow for more people to try the product at a cheaper cost. </span>