Which of the Following Is Not a Characteristic of the Structure

question 73

Multiple Choice

Which of the following is not a characteristic of the structure of perfectly competitive markets?

• A) Each individual firm is small in size relative to the overall market.
• B) Few sellers.
• C) Homogeneous product.
• D) Easy, low cost entry and exit.

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Definitions:

Federal Income Tax

A tax levied by the federal government on the annual income of individuals, corporations, trusts, and other legal entities.

Regressive Tax

A tax system where the tax rate decreases as the taxable amount increases, imposing a heavier burden on lower-income individuals.

Proportional Tax

A tax system where the tax rate is fixed and applied uniformly to all taxpayers, regardless of income level.

Marginal Tax Rate

The tax rate applied to the next dollar of taxable income, indicating how much tax will be paid on an additional dollar earned.