In a Competitive Industry, Which of the Following Cannot Be

question 6

Multiple Choice

In a competitive industry, which of the following cannot be true for a firm in the long run?

• A)Price equals marginal cost.
• B)Profits are maximized.
• C)The firm takes market price as given.
• D)Economic profits equal zero.
• E)Price equals average variable cost.

Apply knowledge of shareholders' equity transactions to determine net income or shareholders' equity.

Understand the characteristics and accounting implications of convertible debt and convertible bonds.

Understand the core components and calculations involved in pension expense for defined benefit plans.

Differentiate between defined benefit and defined contribution pension plans.