Which of the Following Helps Explain Why the Law of Supply

question 331

Multiple Choice

Which of the following helps explain why the law of supply exists?

• A) Larger outputs result in lower costs of production.
• B) The law of increasing opportunity cost
• C) The costs of production remain constant throughout all levels of output.
• D) Sellers realize that if the price increases, they make larger profits and do not need to change their production.
• E) The law of demand

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Definitions:

Days' Sales Uncollected

Days' Sales Uncollected is a financial metric calculating the average number of days it takes a company to collect payments after a sale has been made.

Petty Cash Receipts

Petty cash receipts are documents that record small, immediate cash expenses incurred by a business, tracking the disbursement and replenishment of a petty cash fund.

Reimburse

To pay back money to someone which they have spent or lost.

Transportation-In

Costs associated with bringing raw materials to a manufacturing plant or storage location, typically classified as part of the inventory cost on the balance sheet.