Which of the Following Is Not a Characteristic of a Competitive

question 339

Multiple Choice

Which of the following is not a characteristic of a competitive market?

• A)Buyers and sellers are price takers.
• B)Each firm sells a virtually identical product.
• C)Entry is limited.
• D)Each firm chooses an output level that maximizes profits.

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Definitions:

Preauthorized Payments

Financial arrangements allowing a payee to automatically withdraw money from a payer's bank account for recurring bills or subscriptions.

Collection Time

The duration it takes for a business to receive payments owed by its customers.

Lockbox System

A service provided by banks to companies for the receipt of payment from customers, whereby payments are sent directly to a post office box, rather than to the company, to expedite the deposit process.

Clearing Process

The procedure by which financial trades settle; that is, the correct and timely transfer of funds to the seller and securities to the buyer.