Which of the Following Characteristics Is True for a Competitive

question 180

Multiple Choice

Which of the following characteristics is true for a competitive price searcher but not for a price taker?

• A) The firm earns zero profits in the long run.
• B) The firm has an incentive to operate efficiently.
• C) A reduction in market demand will lead to short-run losses.
• D) Price is above marginal cost in long-run equilibrium.

---

Definitions:

Authorized Signing Officer

is an individual granted the authority by an organization to sign official documents on behalf of the company.

Supporting Documentation

Documents that provide evidence of transactions and can include receipts, invoices, contracts, and bank statements.

Control Activity

A policy or procedure that is part of the internal control framework designed to address specific risks and help ensure the achievement of an organization's objectives.

Prenumbered Documents

Documents that are sequentially numbered in advance to ensure completeness and to prevent fraud or misuse.