Use the Following to Answer Questions

question 42

Multiple Choice

Use the following to answer questions :
Figure 10-3
-An imperfect competitor whose cost and demand relations are as given in Figure 10-3:

• A)is making losses.
• B)is making economic profits.
• C)is making no economic profits.
• D)should shut down.
• E)is none of the above.

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Definitions:

Sales Discounts

Reductions in the price of goods or services that are offered by sellers to incentivize prompt payment by buyers.

Net Sales

The revenue a company earns from its sales activities, minus the costs associated with returns, compensation for faulty or missing items, and permitted discounts.

Normal Credit Balance

The usual balance side of an account, considered a credit for liability, revenue, and equity accounts.

Sales Discounts

A reduction from the gross or total price of goods or services offered by the seller to the buyer under certain conditions.