If a Firm Has Substantial Market Power, It Must Be

question 57

Multiple Choice

If a firm has substantial market power, it must be operating in an industry that would be classified as

• A) a monopoly or oligopoly.
• B) competitive price-taker.
• C) competitive price-searcher.
• D) competitive price-searcher or price-taker.
• E) competitive price-taker or a monopoly.

---

Definitions:

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary accounts' balances to permanent accounts, thereby preparing the books for the next period.

Revenue Account

An account in financial accounting used to record income generated by a company's ordinary activities.

Net Income

Represents the total profit of a company after all expenses, including taxes and operating costs, have been subtracted from total revenue.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts, closing out the revenue and expense accounts.