Based on the Above Scenario,is the Industry in the Long

question 13

Multiple Choice

Based on the above scenario,is the industry in the long run equilibrium?

• A)yes,because all firms are producing at P=MR=MC
• B)no,because the price is still greater than the minimum average total cost.
• C)cannot answer because need information on MR
• D)cannot answer unless we see that the market lets some firms enter and/or some firms exit.

---

Definitions:

Inventory Period

The time it takes for a company to turn its inventory into sales.

Accounts Payable Period

The duration it takes for a company to pay off its supplier invoices.

Accounts Receivable Period

The typical period a firm takes to collect receivables from its clients.

Cash Cycle

The period between the outlay of cash for raw materials and receiving cash from customer payments, essentially measuring the time it takes for a company to turn its inventory into cash.