In Perfect Competition,which of the Following Conditions Must Prevail

question 26

Multiple Choice

In perfect competition,which of the following conditions must prevail?

• A) All firms must adhere to cost and pricing standards.
• B) The number of firms in the industry must be limited.
• C) A single firm is able to influence the price of its product.
• D) It is relatively difficult to enter the industry.
• E) All firms in a given industry must be small.

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Definitions:

Apparent Authority

Apparent authority refers to a situation where a third party is led to believe that an agent has the right to act on behalf of a principal, regardless of whether this is true.

Actual Authority

The explicit power given to an agent by a principal, enabling the agent to perform acts on behalf of the principal.

Taxable Income

The portion of an individual's or entity's income used to determine how much tax is owed to the government in a given tax year.

Federal Tax Return

The annual submission required by the federal government detailing an individual or entity's income, deductions, and tax liability.