Which Statement About Markets Is Correct? I

question 328

Multiple Choice

Which statement about markets is correct? I. All markets require a physical location.
II) All markets involve a transaction of some type.
III) Markets operate independently of laws and regulations.

• A) I and II
• B) II only
• C) III only
• D) I, II, and III

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Definitions:

Direct Materials Cost

The expense associated with raw materials directly incorporated into a finished product.

Break-even Point

Break-even Point is the financial analysis term that indicates when total costs and total revenues are exactly equal, resulting in neither profit nor loss.

Mixed Costs

Costs with both variable and fixed characteristics, sometimes called semivariable or semi-fixed costs.

Variable Components

Parts of a cost or expense that change in proportion with changes in the level of business activity or production volume.