For a Competitive Market, Which of the Following Is True

question 210

Multiple Choice

For a competitive market, which of the following is true?

• A)A seller who charges more than the going price can increase her profit.
• B)If a seller charges more than the going price, buyers will go elsewhere.
• C)A seller often charges less than the going price to increase sales and profit.
• D)A buyer can influence the price of the product, but only when purchasing from several sellers.

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Definitions:

Primary Goal

The main objective or purpose that an organization, individual, or project aims to achieve.

Managerial Accounting

The practice of analyzing, interpreting, and presenting financial information to management for the purpose of informed decision-making.

GAAP

Generally Accepted Accounting Principles, a collection of commonly-followed accounting rules and standards for financial reporting.

Estimates

Approximations or informed guesses made about future events or values, often used in budgeting and planning.