Which of the Following Is Not a Characteristic of Perfect

question 98

Multiple Choice

Which of the following is not a characteristic of perfect competition?

• A)Large number of firms in the industry.
• B)Outputs of the firms are perfect substitutes for one another.
• C)Firms face downward-sloping demand functions.
• D)No barriers to entry or exit.

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Definitions:

Operating Activities

Activities that are directly related to the primary business operations, such as selling products or services and associated costs.

Net Income

The overall income a business makes once all costs, such as taxes and operational expenditures, are deducted from the total earnings.

Net Cash

This refers to the amount of cash remaining after all cash outflows are subtracted from all cash inflows over a given period.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.