In a Competitive Market, No Single Producer Can Influence the Market

question 458

Multiple Choice

In a competitive market, no single producer can influence the market price because

• A)many other sellers are offering a product that is essentially identical.
• B)consumers have more influence over the market price than producers do.
• C)government intervention prevents firms from influencing price.
• D)producers agree not to change the price.

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Definitions:

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold based on the average cost of all items in inventory, taking into account the quantity of each item.

Process Costing System

A cost accounting method used for homogeneous products, assigning costs based on departments or processes the products go through.

Processing Department

A specific area or segment of a manufacturing facility where a distinct process or series of activities is carried out.

Ending Inventory

At the conclusion of a financial cycle, the cost of products up for sale is figured out by taking the starting inventory, adding any acquisitions, and deducting the expense associated with the goods that have been sold.