Company P Sells $3000 of Merchandise on Account to Company

question 198

Multiple Choice

Company P sells $3000 of merchandise on account to Company Q with credit terms of 2/10 n/30. If Company Q remits a check taking advantage of the discount offered what is the amount of Company Q's check?

• A) $2100
• B) $2400
• C) $2700
• D) $2940

---

Definitions:

Resource Prices

The cost associated with acquiring the natural resources needed for production, such as minerals, timber, water, and land.

Output Increased

A situation where the production of goods or services in an economy rises.

Purely Competitive Market

A market structure characterized by a large number of small firms, a homogeneous product, free entry and exit, and perfect information, leading to firms being price takers.

Short Run

A time period in which at least one factor of production is fixed, limiting the ability of a firm to adjust its output.