If a Company Sells Merchandise with Credit Terms 2/10 N/60

question 25

True/False

If a company sells merchandise with credit terms 2/10 n/60, the credit period is 10 days and the discount period is 60 days.

---

Definitions:

Price-Searcher Markets

Markets where sellers have some discretion over the price of their products due to a lack of perfect competition.

Price-Taker Markets

Markets where individual firms have no control over the price of their products, due to perfect competition and homogeneous products.

Economic Profits

The difference between a firm's total revenue and all costs, including both explicit and implicit costs, representing the excess over the opportunity cost.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market. In a monopoly market, the seller faces no competition, as he is the sole seller of goods with no close substitute.