All Else Equal, Managers of Dominant Firms Want ______Competitive Fringe

question 34

Multiple Choice

All else equal, managers of dominant firms want ______competitive fringe firms in the market as this allows dominant firms to have a ______markup.

• A)more; lower
• B)more; higher
• C)fewer; lower
• D)fewer; higher

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Definitions:

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made, used to ensure that total debits equal total credits before preparing financial statements.

Ledger Account Balances

The current balances in ledger accounts, reflecting all transactions recorded over time.

Liability Account

An account documenting the obligations or debts a company owes to others, which must be settled over time.

Normal Balance

The usual debit or credit balance that an account type is expected to have, which helps in ensuring the correct recording of transactions.