Competition Is More Likely to Exist When

question 26

Multiple Choice

Competition is more likely to exist when

• A)there is easy entry into and exit out of industries.
• B)a government-issued license is required to set up a firm in an industry.
• C)the government purchases most goods and services.
• D)economic power is concentrated among a few large firms.

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Definitions:

Item Sold

A product or service that has been purchased by a customer, contributing to a company's sales revenue.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a product and represent a significant portion of the production cost.

Per-unit Cost

The cost associated with producing or acquiring one unit of a product or service.

Repairs

Repairs involve fixing or restoring equipment, machinery, or property to its proper condition without significantly altering its original condition.