The Price in a Contestable Market Is Similar to That

question 113

Multiple Choice

The price in a contestable market is similar to that in a perfectly competitive market because

• A) there are barriers to entry.
• B) there are no barriers to entry.
• C) there are many firms in the market.
• D) the firm can earn an economic profit in the long run.

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Definitions:

Interest Receivable

This represents the amount of interest income that has been earned but not yet received in cash by the company.

Adjusting Entry

Accounting records created at the closing of an accounting cycle to distribute revenues and costs to the period they truly belong.

Interest Revenue

Income earned by an entity from lending money or from investments in interest-bearing assets like bonds, savings accounts, or loans.

Unadjusted Trial Balance

A list of all the ledger accounts with their balances at a specific point in time before any adjustments have been made.