Which Characteristic Is an Assumption in a Perfectly Competitive Market

question 102

Multiple Choice

Which characteristic is an assumption in a perfectly competitive market structure?

• A) significant barriers to entry and exit
• B) products with labels
• C) perfect information about the markets
• D) a few large buyers and a few large sellers

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Definitions:

Depreciation Expense

An accounting method used to allocate the cost of a tangible or physical asset over its useful life, reflecting wear and tear, deterioration, or obsolescence of the asset.

Straight-line Method

A method of calculating depreciation for an asset, spreading the cost evenly over its useful life.

Salvage Value

The calculated remaining value of an asset at the close of its productive life.

Depreciation Expense

An accounting method of allocated the cost of a tangible or physical asset over its useful life, representing how much of the asset's value has been used up.