Which of the Following Would Prevent a Market from Being

question 61

Multiple Choice

Which of the following would prevent a market from being classified as perfectly competitive?

• A)there are many buyers and sellers in the market
• B)it is easy for new firms to enter the market
• C)it is easy for existing firms to exit the market
• D)buyers perceive significant differences among the products of different sellers
• E)each buyer purchases only a tiny fraction of the total market quantity

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Definitions:

Present Value

The present value of anticipated future cash flows or sums of money, calculated with a given rate of earnings.

Net Cash Flow

The difference between a company's cash inflows and outflows during a specific period, providing insight into its financial health and liquidity.

Internal Rate Of Return

The discount rate at which the net present value of all the cash flows from an investment equal zero.

Present Values

The current worth of a future sum of money or stream of cash flow given a specified rate of return.