The Competitive Equilibrium Model Gets Its Name from the

question 12

Multiple Choice

The competitive equilibrium model gets its name from the

• A)fact that the number of participants eliminated from the market equals the number of new participants.
• B)competition between buyers and sellers, each trying to drive the other out of business.
• C)competition between buyers and sellers, which establishes a market price equating the amounts people wish to buy and sell.
• D)steady-state nature of the model, in which prices can never change.
• E)way that the government is trying to balance the market's supply and demand forces.

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Definitions:

Cash Coverage Ratio

A financial metric that measures a company's ability to pay off its debt obligations with its cash flow, by comparing its operating cash flow to its total debts.

Days' Sales

Days' Sales, often referred to as Days Sales Outstanding (DSO), measures the average number of days it takes a company to collect payment after a sale has been made.

Receivables Turnover

A financial metric that measures how efficiently a company uses its assets by converting accounts receivable into cash over a period.

Debt-Equity Ratio

A financial ratio that represents the comparative deployment of shareholders' equity and debt in asset financing.