Figure 10-4 -Refer to Figure 10-4. Which Graph Represents a Market with Represents

question 22

Multiple Choice

Figure 10-4

-Refer to Figure 10-4. Which graph represents a market with no externality?

• A)Graph (a)
• B)Graph (b) only
• C)Graph (c) only
• D)Graphs (b) and (c)

---

Definitions:

Perpetual LIFO

A method of inventory valuation where the last items added to inventory are considered the first items sold, continuously updated in real-time.

Purchases and Sales

This involves transactions related to buying (purchases) and selling (sales) goods or services, critical to determining a business's revenue and inventory levels.

LIFO Perpetual

A perpetual inventory system method that assumes the last items added to inventory are the first ones sold, under the Last-In, First-Out principle.

Inventory Value

The total cost of all the items held by a company for resale or production purposes, calculated at a specific point in time.