A Firm Has $5,300 of Cash, Equipment Worth $49,000, Inventory

question 32

Multiple Choice

A firm has $5,300 of cash, equipment worth $49,000, inventory of $30,000, $8,900 worth of patents, and $15,700 of accounts receivable. What is the value of the total current assets?

• A)$21,000
• B)$30,000
• C)$51,000
• D)$59,900
• E)$108,900

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Definitions:

Competitive Firm

A company that operates in a market where it competes against other firms for market share and customers.

Long-run Equilibrium

A state in which supply equals demand, and all firms in the market are operating at an efficient scale with no incentive to enter or exit.

Minimum ATC

The point at which a firm's average total cost is at its lowest, typically considered in the context of the long-run average cost curve.

Purely Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product that is homogeneous across suppliers.