If New Manufacturers Enter the Computer Industry, Then Ceteris Paribus)

question 23

Multiple Choice

If new manufacturers enter the computer industry, then ceteris paribus) :

• A) the supply curve shifts to the left.
• B) the supply curve shifts to the right.
• C) the demand curve shifts to the left.
• D) some established manufacturers must exit the industry.

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Definitions:

Expected Sales

The projected amount of sales that a company anticipates to achieve within a specific period.

Average Collection Period

The average number of days it takes a company to receive payment after a sale has been made.

Operating Cycle

The period between the acquisition of inventory and the collection of receivable generated from sales, reflecting how long it takes for a business to convert its inventory into cash.

Cash Collections

The process of gathering and managing the cash received from customers or clients.