The Textile Industry Is Composed of a Large Number of Small

question 62

Multiple Choice

The textile industry is composed of a large number of small firms. In recent years, these firms have suffered economic losses, and many sellers have left the industry. Economic theory suggests that if technology, imports, and other factors remain constant, these conditions will

• A) shift the market demand curve outward so that price will rise to the level of production cost.
• B) cause the remaining firms to collude so they can produce more efficiently.
• C) cause the market supply to decline and the price of textiles to rise.
• D) cause firms in the textile industry to suffer long-run economic losses.

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Definitions:

Controlling

In management, it refers to the process of setting standards, measuring actual performance, and taking corrective action to ensure the achievement of an organization's objectives.

Budgeted Goals

Objectives set during the budgeting process that financial and operational plans aim to achieve within a specific time frame.

Cash Budget

A cash budget is a financial plan that estimates the cash inflows and outflows over a specific period, helping businesses manage their liquidity and financial stability.

Minimum Cash Balance

The least amount of cash a business decides to keep on hand to meet immediate needs, often set as a part of cash management policies.