In a Freely Operating Market System, Queuing Is Most Likely

question 336

Multiple Choice

In a freely operating market system, queuing is most likely to occur when

• A) selling necessities.
• B) the market clearing price increases.
• C) demand fluctuates unpredictably and quickly.
• D) demand increases gradually over time.

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Definitions:

Likelihood of Collection

An assessment of the probability that accounts receivable or other debts will be successfully collected from debtors.

Factoring Fee

A charge assessed by a factoring company for providing cash advances to businesses by purchasing their accounts receivable at a discount.

Accounts Receivable

Outstanding payments due to a firm from its clients for delivered services or products yet to be settled.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount in exchange for immediate cash.