In a Competitive Market,the Actions of Any Single Buyer or Seller

question 97

Multiple Choice

In a competitive market,the actions of any single buyer or seller will

• A)have a negligible impact on the market price.
• B)have little effect on overall production but will ultimately change final product price.
• C)cause a noticeable change in overall production and a change in final product price.
• D)adversely affect the profitability of more than one firm in the market.

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Definitions:

Equity

Equity refers to the ownership interest in a company of its shareholders, representing the residual assets of the company after deducting liabilities.

Dividends Paid

The portion of a company's earnings that is distributed to shareholders.

Retained Earnings

The portion of net income not distributed as dividends to shareholders but reinvested in the company or kept as reserve.

Tax Schedule

A chart or table provided by taxing authorities that shows the tax rate that applies to different levels of taxable income.