Credit Terms of "2/10,n/30" Mean That If Payment Is Made

question 71

True/False

Credit terms of "2/10,n/30" mean that if payment is made in two days,a 10% discount will be given;if not paid within two days,the full invoice price will be due in thirty days.

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Definitions:

Free Entry And Exit

A situation in a market where firms can enter and leave the industry without facing significant barriers or costs, promoting competition.

Industry

A sector of the economy that involves the production and distribution of goods or services within a particular field.

Monopolistically Competitive Industry

Describes a market structure where many companies sell products that are similar but not identical, allowing for significant differentiation and some pricing power.

Excess Capacity

The situation in which a firm's actual production is less than its maximum possible production capacity.