In a Perfectly Competitive Industry

question 401

Multiple Choice

In a perfectly competitive industry

• A) each firm is a price maker.
• B) no buyer or seller can influence the market price.
• C) there is apt to be a shortage of sellers of output.
• D) firms can never make an economic profit.

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Definitions:

Account Receivable

Money owed to a business by its clients or customers for goods or services delivered but not yet paid for.

Credit Terms

Terms for payment on account by the buyer to the seller.

Sales Discount

A reduction in the sale price offered by a seller to a buyer, usually to encourage prompt payment or to increase sales volume.

Invoice Date

Invoice Date refers to the date listed on an invoice, indicating when it was issued and often starting the timeline for payment due.