One of the Characteristics of Perfect Competition Is That

question 2

Multiple Choice

One of the characteristics of perfect competition is that:

• A) some firms can influence price.
• B) firms depend on each other in setting the output.
• C) firms produce a differentiated product.
• D) consumers do not distinguish between the sellers.

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Definitions:

Accounts Payable Period

The average duration it takes for a company to pay off its suppliers after receiving goods or services.

Accounts Receivable Period

The mean duration that a company requires to receive payments from credit sales, reflecting the effectiveness of its policies on credit and collections.

Operating Cycle

The period of time between the acquisition of inventory by a company and the receipt of cash from accounts receivable from the sale of that inventory.

Inventory Period

The time it takes for a company to turn its inventory into sales.