The Long Run for the Industry Is Defined as a Period

question 204

Multiple Choice

The long run for the industry is defined as a period of time long enough for

• A)any new firm that desires to enter the industry.
• B)any old firm that desires to leave the industry.
• C)all aspects of production to vary and there are no fixed costs.
• D)All of the above are correct.

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Definitions:

Operating Cycle

The duration of time it takes for a company to purchase inventory, sell products, and collect cash from customers.

Financial Data

Information relating to the financial status or performance of a company, including income, expenses, assets and liabilities.

Sales On Account

Transactions where goods or services are sold and payment is deferred, creating accounts receivable for the seller.

Average Sale Period

The average time period that items remain in inventory before being sold, indicating the liquidity of inventory.