The Competitive Equilibrium Model Gets Its Name from the

question 12

Multiple Choice

The competitive equilibrium model gets its name from the

• A)fact that the number of participants eliminated from the market equals the number of new participants.
• B)competition between buyers and sellers, each trying to drive the other out of business.
• C)competition between buyers and sellers, which establishes a market price equating the amounts people wish to buy and sell.
• D)steady-state nature of the model, in which prices can never change.
• E)way that the government is trying to balance the market's supply and demand forces.

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Definitions:

Retained Earnings

Cumulative net earnings not distributed as dividends to shareholders, but instead reinvested in the business.

Inflation

The pace at which prices for goods and services across the board go up, diminishing the value of money.

Required Rate

The minimum return an investor expects to achieve on an investment, considering its risk level and the opportunity cost of forgoing other investments.

Marginal Cost

Marginal cost refers to the increase or decrease in the total cost of producing one more unit of a good or service.