What Is the Main Difference Between a Perfectly Competitive Industry

question 43

Multiple Choice

What is the main difference between a perfectly competitive industry and a monopolistically competitive firm?

• A) the number of firms in the market
• B) product differentiation
• C) zero economic profit
• D) no barriers to entry

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Definitions:

Perpetual Inventory System

An inventory accounting practice that instantly processes and records purchases or sales utilizing computerized point-of-sale systems alongside enterprise asset management software.

Merchandise

Products that are purchased and traded during business operations, usually in a retail or wholesale environment.

Perpetual Inventory System

An inventory management system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Net Method

An accounting technique used for recording purchases where the purchase is recorded net of any trade discounts offered by the supplier.