If There Are a Small Number of Firms in an Industry

question 30

Multiple Choice

If there are a small number of firms in an industry:

• A) price competition will result
• B) firms may be able to increase the price above the market price level
• C) firms will compete each other out of business
• D) firms will enter the industry until numerous firms result

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Definitions:

Taxable Income

The amount of an individual's or corporation's income that is used to determine how much tax is owed to the federal government.

Foreign Income Taxes

Taxes paid to a foreign government for income earned in the foreign country.

Child Tax Credit

A credit aimed at helping families offset some of the costs of raising children by reducing their tax liability.

AGI

Adjusted Gross Income, calculated as gross income minus specific adjustments, used to determine tax liability and eligibility for certain tax benefits.