Which of the Following Statements Is True About a Competitive

question 10

Multiple Choice

Which of the following statements is true about a competitive market? A competitive market

• A)includes markets for goods and services but not for inputs.
• B)has so many buyers and sellers that no one can influence the price.
• C)must have a physical location.
• D)has one seller competing to sell his or her product.
• E)has a handful of sellers but always has many buyers.

---

Definitions:

Fixed Manufacturing Overhead

encompasses the consistent, non-varying costs of producing goods, such as factory lease or salary of supervisors, linked but differently phrased to fixed manufacturing expenses.

Outside Supplier

An external entity that provides goods or services to a company, which are not produced in-house.

Variable Costs

Costs that vary directly with the level of production or service output, such as raw materials and direct labor expenses.

Allocated General Overhead

The distribution of overhead costs, such as electricity, rent, and administrative salaries, to various departments or production processes based on a predetermined formula.