The Major Objective of a Firm in Granting Credit Is

question 44

Multiple Choice

The major objective of a firm in granting credit is

• A) generating consumer goodwill.
• B) reducing bad debt risk.
• C) make sales.
• D) promoting the business.

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Definitions:

Monopolistically Competitive

A market structure where many companies sell products that are similar but not identical, allowing for some degree of market power and pricing above marginal cost due to product differentiation.

Monopolies

Market circumstances where a single entity or group exclusively controls the supply of a particular good or service, often leading to limited choices and higher prices for consumers.

Demand Schedule

A table or graph showing the quantity of a product or service that consumers are willing and able to purchase at various prices.

Economic Profit

The total revenue of a business minus its explicit and implicit costs, representing the profit beyond the next best alternative use of resources.