In Pure Competition, Price Is Determined Where the Industry

question 207

Multiple Choice

In pure competition, price is determined where the industry

• A)demand and supply curves intersect.
• B)total cost is less than total revenue.
• C)demand intersects the individual firm's marginal cost curve.
• D)average total cost equals total variable cost.

---

Definitions:

Accounts Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for, typically recorded on the balance sheet.

Perpetual Inventory System

An approach in inventory accounting that employs computerized point-of-sale systems and enterprise asset management software to instantaneously record the purchase or sale of inventory items.

Credit To Inventory

An accounting entry that increases the inventory account, reflecting the addition of goods or the correction of an underreported inventory balance.

Credit Period

The amount of time the buyer is allowed in which to pay the seller.