A Perfectly Competitive Firm in a Constant-Cost Industry Produces 1,000

question 144

True/False

A perfectly competitive firm in a constant-cost industry produces 1,000 units of a good at a total cost of $50,000.If the prevailing market price is $48, the number of firms and the industry's output will decrease in the long run.

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Definitions:

Uncollected

Refers to funds or debts that have not been received or recovered by the due date.

Accounts Receivable

Money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Net Profit Margin

A financial metric that shows the percentage of a company's revenue that remains as net income after operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Management Efficiency

A measure of how effectively a business or organization's management team utilizes resources to achieve its goals.