With Free Entry

question 32

Multiple Choice

With free entry

• A)economic profits are possible over the long run.
• B)economic profits are possible but only over limited amounts of time.
• C)economic profits are not possible.
• D)the cost of capital will not be covered.

---

Definitions:

Worksheet

An informal document used within an accounting system to collate all data for financial statements preparation, aiding in the adjustment and closing process.

Merchandising Company

A business that sells finished goods to consumers, making profits through the buying and selling activities.

Inventory

The total of all goods available for sale or use, including raw materials, work-in-progress, and finished goods.

Perpetual Inventory

A system of accounting for inventory that records the sale or purchase of inventory immediately through computerized systems.