Price Is Constant to the Individual Firm Selling in a Purely

question 68

Multiple Choice

Price is constant to the individual firm selling in a purely competitive market because

• A) the firm's demand curve is downsloping.
• B) of product differentiation reinforced by extensive advertising.
• C) each seller supplies a negligible fraction of total supply.
• D) marginal costs are constant.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded against an asset over its useful life to date.

Contra-Asset

An account that decreases the balance of its associated asset account through a contra entry.

Supplies

Consumable items used in day-to-day operations of a business or office, such as stationery, paper, and cleaning products.

Expenses

Outflows or other uses of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity's ongoing major operations.