Which of the Following Is Not an Assumption of Perfectly

question 229

Multiple Choice

Which of the following is not an assumption of perfectly competitive markets?

• A)There are many sellers and many buyers, all of which are small relative to the market.
• B)Each firm produces a similar but not identical product.
• C)There are no barriers to new firms entering the market.
• D)The products sold by all firms in the market are identical.

Understand the basic principles of preparing financial statements and the effects of certain transactions on these statements.

Recognize the primary responsibilities for the information provided in financial statements.

Understand the cash flow statement and differentiate between operating, investing, and financing activities.

Understand and calculate net cash flow from investing activities.