Suppose That Dave's Camera Shop Operates in a Competitive Market

question 158

Multiple Choice

Suppose that Dave's Camera Shop operates in a competitive market for cameras, which of the following statements is (are) true?
(i) he can maximise profit by raising his prices
(ii) he can maximise profit by altering the quantity of cameras that he supplies
(iii) he will be able to earn a profit only if he differentiates his cameras from the rest of the market

• A)(i) only
• B)(ii) only
• C)(i) and (ii)
• D)(iii) only

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Definitions:

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of the business.

Debt-To-Equity Ratio

A metric that shows the balance between the amount of a company's assets financed by owners' equity and that financed by debt.

Working Capital

Working capital represents a company's operating liquidity and is calculated as current assets minus current liabilities.

Long-Term Assets

Assets that a company plans to hold for more than one fiscal year, such as buildings, land, and equipment.