Which of the Following Would Best Describe the Demand Curve

question 182

Multiple Choice

Which of the following would best describe the demand curve faced by a monopoly firm?

• A) horizontal line at the market price
• B) vertical line at the output level
• C) same as the market demand curve
• D) same as the perfect competitor's demand curve

---

Definitions:

Days' Sales

A financial metric that calculates the average time it takes for a company to convert its inventory into sales.

Receivables Ratio

The Receivables Ratio, also known as the Accounts Receivable Turnover Ratio, measures how efficiently a company collects cash from its customers by comparing sales to the average receivables.

Outstanding Accounts

Accounts or invoices that have been billed but not yet paid by customers.

EBIT

Earnings Before Interest and Taxes, a financial metric indicating a company's operating profitability by excluding interest and taxes from earnings.