Which of the Following Changes Will Not Affect the Market

question 137

Multiple Choice

Which of the following changes will not affect the market supply or the market demand in a purely competitive industry?

• A) a change in fixed costs
• B) a change in the number of buyers
• C) a change in marginal costs
• D) a change in the number of firms

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Definitions:

Times Interest Earned

A financial metric that measures a company's ability to meet its debt obligations by comparing its interest expenses to its earnings before interest and taxes (EBIT).

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity and operational efficiency.

Total Current Assets

The sum of all assets a company expects to convert into cash within one year, including cash, accounts receivable, and inventory.

Total Current Liabilities

The sum of all liabilities of a company that are expected to be settled within one fiscal year or an operating cycle, whichever is longer.