Which of the Following Is a Defining Characteristic of a Perfectly

question 32

Multiple Choice

Which of the following is a defining characteristic of a perfectly competitive market?

• A) Persistent economic profits in the long run
• B) Higher prices being charged for certain name brands
• C) No restrictions on entry into the industry
• D) Advertisements by well- known celebrities

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Definitions:

Standard Deduction

A fixed dollar amount that reduces the income on which you are taxed, an alternative to itemizing deductions, varies based on filing status.

Tax Year

The 12-month period for which tax is calculated and paid. It can be a calendar year or a fiscal year.

Filing Joint Return

The tax filing status used by married couples who choose to combine their income and report it on one tax return.

Qualifying Widow(er)

A tax filing status available to a widowed individual with dependents, providing eligibility for standard deduction and tax rates that are more favorable for a specific period following the spouse's death.