Use This Information to Answer the Following Question

question 26

Multiple Choice

Use this information to answer the following question. The total amount of working capital is

• A)($30,000.)
• B)$80,000.
• C)$24,000.
• D)$400,000.

---

Definitions:

Cutthroat Competition

An extremely competitive market situation where competitors use aggressive tactics to undercut each other's prices, leading to very low profit margins.

Sticky Prices

A situation in economics where the prices of goods and services are slow to respond to changes in the supply and demand.

Herfindahl-Hirschman Index

A measure of market concentration to assess the level of competition within an industry.

Degree of Concentration

A measure of the extent to which a small number of firms or entities dominate in a particular market or industry.