Which of the Following Is an Important Characteristic of Perfectly

question 155

Multiple Choice

Which of the following is an important characteristic of perfectly competitive markets? Goods are standardized. Buyers and sellers are price takers. Firms can freely enter and exit the market.

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

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Definitions:

Investment Method

A technique for recognizing the investor's share of investee profits and adjusting the carrying amount of the investment accordingly.

Accounting

The systematic process of recording, summarizing, and reporting the financial transactions and positions of a company.

Available-for-sale

This is a classification for investments that a company plans to sell but are not actively traded, with changes in value reported in other comprehensive income.

Unrealized Gain

A profit that has occurred on paper due to an investment's increased value but has not yet been realized through a sale.