Which of the Following Is a Defining Characteristic of a Perfectly

question 96

Multiple Choice

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

• A) advertisements by well-known celebrities
• B) persistent economic profits in the long run
• C) no restrictions on entry into the industry
• D) higher prices being charged for certain name brands

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Definitions:

Gross Sales

The total sales revenue from goods or services before any deductions for returns or discounts.

Direct Expense

Expenses that can be directly attributed to the production of specific goods or services, such as materials and labor.

Sales Salaries

Compensation paid to employees directly involved in the sales function of a business, typically comprising both base salary and commissions.

Administrative Expense

Expenses related to the general operation of a business, including salaries of executive personnel, accounting and legal services, and insurance.