Which of the Following Statements Is True About a Competitive

question 253

Multiple Choice

Which of the following statements is true about a competitive market? A competitive market

• A) must have a physical location.
• B) includes markets for goods and services but not for inputs.
• C) has so many buyers and sellers that no one can influence the price.
• D) has one seller competing to sell his or her product.
• E) has a handful of sellers but always has many buyers.

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Definitions:

Zero Growth

A situation in which a company or economy sees no increase in income, output, or other measures of financial performance over a period.

Common Stockholders

Owners of common shares in a corporation, having voting rights and potentially receiving dividends.

Cumulative Preferred

Refers to preferred stock where dividends that were not paid in the past must be paid out to preferred shareholders before dividends can be distributed to common shareholders.

Proposed Acquisition

A potential financial transaction where one company offers to purchase or merge with another entity.