Which of the Following Is Not a Characteristic of Perfect

question 153

Multiple Choice

Which of the following is not a characteristic of perfect competition?

• A)buyers and sellers having no influence on price
• B)there are no barriers to entry or exit
• C)sellers produce and sell a heterogeneous product
• D)buyers and sellers have access to all relevant information
• E)none of the above

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Definitions:

Idle Capacity

Unused production capacity, indicating available resources that are not currently being utilized.

Transfer Price

Transfer price refers to the price charged for goods or services transferred between departments or divisions within the same company or between affiliated entities.

Valve Division

A specific business unit within a company that focuses on the production and sale of valves.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been subtracted, contributing to covering fixed costs and generating profit.