Which of the Following Best Describes Firms in Perfectly Competitive

question 130

Multiple Choice

Which of the following best describes firms in perfectly competitive markets?

• A) They influence price by varying the quality of output.
• B) They are price makers.
• C) They are price takers.
• D) They sell heterogeneous products.

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Definitions:

Net Income

The remaining income of a company after deducting expenses and taxes from the total income generated.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a dataset, often used in accounting and inventory valuation.

Accounting Principle

Fundamental guidelines or rules that govern how financial statements are prepared and presented.

Fasb

The Financial Accounting Standards Board, an organization that establishes accounting and financial reporting standards for companies and nonprofits in the United States.