Which of the Following Conditions Define a Perfectly Competitive Market

question 52

Multiple Choice

Which of the following conditions define a perfectly competitive market?

• A)The transaction costs are very high.
• B)Information is available to participants at a high cost.
• C)The product is homogenous.
• D)There are limited number of buyers and sellers.

---

Definitions:

WACC

Weighted Average Cost of Capital is an evaluation method for determining the cost of a company's capital, with each source of capital weighted based on its relative proportion.

Present Value

Present value is the current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Regular IRR

The Internal Rate of Return (IRR) is a financial metric used to estimate the profitability of potential investments.

WACC

The Weighted Average Cost of Capital represents the average cost of a company's financing (debt and equity), where each form of capital is weighted according to its proportion in the overall financing mix.