Myrdal Boots can borrow from its bank at 12 percent to take a cash discount. The terms of the cash discount are 3/10, net 90. Myrdal Boots should borrow from the bank to take the discount. 
Definitions:
Units of Output
Quantities of product or service produced by a company, which can be measured to assess productivity or performance.
Quantity Supplied
The amount of a product that producers are willing and able to sell at a given price over a specified period of time.
Product Price
The amount of money required to purchase a good or service, commonly influenced by costs, demand, and supply factors.
Purely Competitive Seller
A seller in a market characterized by many buyers and sellers, free entry and exit, and a homogeneous product where no single seller can influence market price.
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