Which of the Following Characteristics of Competitive Markets Is Necessary

question 417

Multiple Choice

Which of the following characteristics of competitive markets is necessary for firms to be price takers? (i)
There are many sellers.
(ii)
Firms can freely enter or exit the market.
(iii)
Goods offered for sale are largely the same.

• A)(i) and (ii) only
• B)(i) and (iii) only
• C)(ii) only
• D)(i), (ii), and (iii)

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Definitions:

Amortized Cost

The progressive reduction of a debt or the cost of an intangible asset over a specified time period.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is used globally to prepare public company financial statements.

Held to Maturity

A designation for financial assets which a company has the intention and ability to hold until a specified maturity date.

Available-For-Sale Securities

Financial assets that are purchased with the intent of selling before they reach maturity or when favorable market conditions exist.