Which of the Following Results in a Decrease in Working

question 3

Multiple Choice

Which of the following results in a decrease in working capital?

• A)Supplies purchases with cash.
• B)Purchase of a truck in exchange for factory machinery.
• C)Acquisition of land in exchange for stock.
• D)Purchase of equipment with cash.

---

Definitions:

Perfectly Competitive Firm

A business operating in a market where it has no power to influence the price of its product; it is a price taker.

Marginal Cost

The financial outlay for producing a further unit of a product or service.

Perfectly Competitive Firm

A business that operates in a market where there are many buyers and sellers, each selling identical products, and no single buyer or seller can influence market prices.

Short Run

In economics, it denotes a period in which at least one input (e.g., capital) is fixed and cannot be altered.