If Every Firm Is a Price Taker, Then Which of the Following

question 218

Multiple Choice

If every firm is a price taker, then which of the following characteristics does their industry have?

• A)large number of sellers
• B)many versions of the product
• C)limited resource mobility
• D)few consumers
• E)market power

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Definitions:

Noncumulative

A term often used to describe preferred stocks or dividends that do not accumulate if they are unpaid or not declared.

Nonparticipating

Describing a type of insurance policy or preferred stock where the holder is not entitled to share in the company's profits beyond a specified amount.

Journal Entries

Entries made in the accounting records to document financial transactions, updating account balances accordingly.

Noncumulative

A term often referring to certain preferred stock dividends that do not accumulate if unpaid, meaning if a dividend is skipped, it is not owed in the future.