Which of the Following Statements Is True

question 19

Multiple Choice

Which of the following statements is true?

• A) The market structure of an industry frequently changes over time.
• B) Most horizontal mergers are blocked by the government.
• C) Most U.S. industries are perfectly competitive.
• D) Most U.S. industries are monopolies.

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Definitions:

Operating Capacity

The maximum output that a company can produce and sell with the current resources and technology.

Net Working Capital

A measure of a company's liquidity, calculated as current assets minus current liabilities, indicating the short-term financial health and operational efficiency of a business.

Fixed Assets

Long-term tangible assets used in the operation of a business and not expected to be converted to cash in the near term.

Operating Capacity

The maximum output a company can produce using its current resources without compromising quality or efficiency.