Identify a True Statement About Substitutes

question 63

Multiple Choice

Identify a true statement about substitutes.

• A)Substitutes put upward pressure on the price that firms in an industry can charge.
• B)Substitutes give a firm the freedom to charge customers high prices for their products.
• C)It is a product with the same basic characteristics and is made using the same general set of inputs.
• D)It is a product that is fundamentally different yet serves the same basic function as another product.

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Definitions:

Sales Invoice

A document issued by a seller to a buyer, listing items or services supplied and specifying the amount due for payment.

Purchase Order

A formal document sent from a buyer to a supplier to authorize the purchase of products or services under specified terms and conditions.

Subsidiary Ledger

A detailed ledger that contains the individual accounts needed to support a specific general ledger account.

Accounts Payable

Liabilities of a business that are obligations to pay creditors for goods and services purchased on credit.