When Economists Use Standard Supply and Demand Theory,they Are Assuming

question 28

Multiple Choice

When economists use standard supply and demand theory,they are assuming that the supply curve describes:

• A)all firms.
• B)firms that operate in perfectly competitive markets.
• C)firms that face perfectly elastic supply.
• D)Firms in the short run.

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Definitions:

Gross Profit Ratio

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold.

Ending Inventory

The total value of all inventory, including raw materials, work-in-progress, and finished goods, that a business has at the end of an accounting period.

FOB Shipping Point

FOB Shipping Point, or Free On Board Shipping Point, means that the buyer takes responsibility for shipping costs and liability once the goods leave the seller's premises.

Year-End Inventory

The total value of a company's inventory at the end of its fiscal year.