If, as a Perfectly Competitive Industry Expands, It Can Supply

question 107

Multiple Choice

If, as a perfectly competitive industry expands, it can supply larger quantities at the same long-run market price, it is

• A)a constant-cost industry.
• B)an increasing-cost industry.
• C)a decreasing-cost industry.
• D)a fixed-cost industry.

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Definitions:

Accounting Information System

A system designed to collect, store, manage, process, retrieve, and report financial data for business operations.

General Ledger

The primary accounting record of a company that uses double-entry bookkeeping, summarizing all transactions over a period.

Cash Receipts Journal

A dedicated accounting journal used to record all cash inflows or receipts of a business.

Purchases Journal

A record of transactions specifically used for tracking all purchases of goods and services on credit.