Which of the Following Arguments Could Be Made as Evidence

question 168

Multiple Choice

Which of the following arguments could be made as evidence that the market for cage-free eggs is perfectly competitive?

• A)The U.S. Department of Agriculture has established standards for the labeling of cage-free eggs.
• B)Sales of cage-free eggs have increased at a rate of 20 percent per year.
• C)As more farmers began selling cage-free eggs, the increase in supply has driven down prices to the point where they just cover the cost of production.
• D)The profits earned by farmers who sell cage-free eggs have continued to grow, despite the increasing number of farmers entering this market.

---

Definitions:

Top-down Approach

Investment strategy that starts with global outlook and macroeconomic analysis before analyzing specific sectors and companies.

Operating Cash Flow

A measure of the amount of cash generated by a company's normal business operations.

Annual Sales

The total revenue a company generates from its operations over the course of a year.

Cash Expenses

Cash expenses are expenditures that a business or individual pays out in cash during a specified period, as opposed to non-cash expenses such as depreciation.