New Firms Have Incentive to Enter an Industry When There

question 69

Multiple Choice

New firms have incentive to enter an industry when there is

• A)new production technologies.
• B)positive economic profits.
• C)an abundance of labor.
• D)high capital costs.

---

Definitions:

Inventory Records

Documented information about the quantity, type, and location of inventory a business has on hand or in transit.

Inventory Shrinkage

The loss of inventory that occurs due to theft, damage, or errors in counting or documentation.

Adjusting Entry

An accounting entry made into a company's general ledger at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.

Merchandise Inventory

Goods that a retailer, wholesaler, or distributor holds for the purpose of resale to customers.