The Market Supply Curve

question 9

Multiple Choice

The market supply curve:

• A)Is the horizontal summation of individual firm's ATC curves.
• B)Is the summation of the individual firm's AVC curves for every level of output.
• C)Is the prices firms choose to sell in a competitive market.
• D)The horizontal summation of individual firm supply curves.
• E)None of the above.

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Definitions:

Accounts Payable Period

The time between receipt of inventory and payment for it.

Cash Cycle

The period between the outflow of cash for the purchase of raw materials and the inflow of cash from the sale of goods or services, reflecting the time it takes for a business to convert its investment in inventory back into cash.

Accounts Receivable Period

The amount of time it takes for a company to collect payment from its customers after a sale has been made, indicative of the company's efficiency in collecting its receivables.

Inventory Item

refers to any product or goods that a company holds in stock with the intention of selling it to customers.