An Important Difference Between a Perfectly Competitive Market and a Monopolistically

question 120

Multiple Choice

An important difference between a perfectly competitive market and a monopolistically competitive market is that,in the latter,

• A)there are more sellers of the good
• B)there are only a few large sellers
• C)there are no barriers to entry or exit
• D)there is only one seller of the good
• E)the product is not standardized

---

Definitions:

Onerous Contract

A contract in which the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under it.

AASB 137

The Australian Accounting Standards Board standard that deals with the treatment of provisions, contingent liabilities, and contingent assets.

Future Operating Loss

A projected loss from future operations, not yet incurred or realized, often considered in impairment assessments and going concern evaluations.

Deferred Liability

A liability that is recorded on the balance sheet and represents a future obligation to pay, such as taxes payable in the future.