In Which Market Structure Do Firms Exist in Very Large

question 152

Multiple Choice

In which market structure do firms exist in very large numbers,each firm produces an identical product,and there is freedom of entry and exit?

• A) monopoly
• B) oligopoly
• C) only perfect competition
• D) only monopolistic competition
• E) both perfect competition and monopolistic competition

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Definitions:

Weighted-Average Method

An accounting technique used to value inventory or cost of goods sold based on an average cost, factoring in both old and new inventory.

Assembly Department

A specific section within a manufacturing facility where components of a product are put together to form the final product.

February

The second month of the year in the Gregorian calendar, known for having 28 days in common years and 29 days in leap years.

Process Costing

An accounting methodology used for homogenous products, where costs are assigned to mass-produced items over a set period.