Net Profit Is the Difference Between Cash Inflows and Outflows

question 72

True/False

Net profit is the difference between cash inflows and outflows.

---

Definitions:

Least-Cost Producer

A producer that can provide goods or services at the lowest possible cost, often due to advantages in technology, processes, or access to resources.

Covert Collusion

An implicit or indirect agreement among competitors to fix prices, limit supply, or divide markets, without explicit communication or a formal agreement.

Gentlemen's Agreements

Informal, non-binding agreements between parties based on honor and not legally enforceable.

Formal Cartels

An agreement among competing firms to control prices, production, and market distribution, which is often illegal.