In a Perfectly Competitive Market,which of the Following Increases the Price

question 19

Multiple Choice

In a perfectly competitive market,which of the following increases the price that the firms charge in the short run?

• A)an increase in the number of firms
• B)an increase in the price of a good that is a complement of the good produced in this market
• C)an increase in market supply
• D)a decrease in the price of a good that is a substitute for the good produced in this market
• E)an increase in market demand

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Definitions:

Business Combination Valuation Reserve

A reserve account used in accounting for the difference between the fair value of net assets of the acquired business and the purchase price.

Company Tax Rate

The percentage of its profits a corporation is required to pay as tax to the government.

Pre-acquisition Equity

The portion of equity interest in an acquiree that the acquirer held before obtaining control of the acquiree.

Fair Value Adjustments

Adjustments made to the reported value of an asset or liability to reflect its current market value rather than its book value.