Which of the Following Best Describes a Perfectly Competitive Market

question 138

Multiple Choice

Which of the following best describes a perfectly competitive market?

• A) A seller who charges more than the going price can increase her profit.
• B) If a seller charges more than the going price, buyers will go elsewhere.
• C) A seller often charges less than the going price to increase sales and profit.
• D) A buyer can influence the price of the product.

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Definitions:

Bonds Payable

Long-term liabilities represented by promissory notes issued by a company to raise capital, to be repaid at a future date.

Installment Note

A debt instrument that requires the borrower to make regular payments (installments) of principal and interest over a set period until the total debt is paid.

Journal Entry

A record in the books of accounts that represents a transaction and its effect on various accounts.

Interest Expense

The financial charge for an entity using borrowed capital over a time frame.