It would be common for a ﬁrm which has adhered to a cash sales policy to experience an increase
in production output immediately following the time the ﬁrm converts to a credit policy.

Question

Quizplus · Accepted Answer

When a firm converts to a credit policy, it allows customers to purchase goods on credit, which can increase sales and ultimately lead to an increase in production output to meet the demand.

It Would Be Common for a ﬁRm Which Has Adhered