The Figure Given Below Represents an Imperfectly Competitive Resource Market

question 33

Multiple Choice

The figure given below represents an imperfectly competitive resource market. Here common land (and not land used for specific purpose) is under consideration.Figure 18.1

-For any particular period of time, say a year, the supply of exhaustible resources:

• A)decreases infinitely with an increase in price.
• B)remains unaffected by any change in price.
• C)increases infinitely with an increase in price.
• D)increases to a certain extent with an increase in price.
• E)decreases to a certain extent with an increase in price.

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Definitions:

Sales Returns and Allowances

Refers to the process of refunding or reducing the sale price for previously sold goods that are returned or for which concessions are made.

Accounts Payable

The amount a company owes to suppliers or vendors for goods or services received but not yet paid for.

Debit

An entry recorded on the left side of a bookkeeping ledger for a transaction that increases asset or expense accounts, or decreases liability, equity, or revenue accounts.

Sales Tax Payable

A liability account that records the amount of sales tax collected from customers, which is owed to the government.