An Imperfection in the Market Mechanism That Prevents Optimal Outcomes

question 90

Multiple Choice

An imperfection in the market mechanism that prevents optimal outcomes is called

• A)Antitrust behavior.
• B)Collusion.
• C)Market failure.
• D)Price leadership.

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Definitions:

Account Receivable

Money owed to a company by its debtors for goods or services that have been delivered or sold but not yet paid for.

Subsidiary Ledgers

Detailed ledgers that provide a breakdown of individual accounts that are summarized in the general ledger.

Customers Ledger

A subsidiary ledger containing individual accounts for customers, showing each customer's sales, payments, returns, and the current balance owed.

Creditors Ledger

A ledger that keeps records of the amounts owed by the business to its suppliers or creditors.