Which of the Following Is Correct

question 15

Short Answer

Which of the following is correct?
In perfect competition, most firms in an industry are large.
In monopolistic competition, there are fewer sellers than in perfect competition but still many buyers.
All things considered, perfect competition is the ideal situation.
In order for an oligopoly to exist, there must not be more than three sellers.
In a monopoly, the firm that is the only supplier does not have to worry about how much consumer demand will fall as it raises its prices.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, reflecting the interest payments on debt over a particular period.

Par Value

A nominal or face value assigned to a share of stock by the corporation's charter, different from the market value.

Journal Entry

A record in the accounting journal that represents a business transaction, including information on debits and credits to various accounts.

Sale of Bonds

The process by which a corporation or government issues bonds to investors in order to raise capital.