Which of the Following Is Not Necessarily a Characteristic of Perfect

question 120

Multiple Choice

Which of the following is not necessarily a characteristic of perfect competition?

• A)low prices
• B)a large number of buyers and sellers
• C)a homogeneous product
• D)perfect information
• E)easy entry and exit in the long run

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Definitions:

Unlevered Cost

The cost of an investment or project without the inclusion of debt, representing the underlying cost to equity holders.

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary according to income or profits.

Coupon

The interest rate paid by a bond, typically expressed as a percentage of the bond's face value.

Unlevered Cost

It involves the cost of funding a project or investment without any debt, reflecting the cost of capital that is equity financed.