Which of the Following Features Is Common to Both Perfectly

question 99

Multiple Choice

Which of the following features is common to both perfectly competitive markets and monopolistically competitive markets?

• A) Firms produce homogeneous goods.
• B) Prices are equal to marginal costs in the long run.
• C) Long-run profits are zero.
• D) Prices are above marginal costs in the long run.

---

Definitions:

Cash Receipts

The collection of money, including cash, checks, and credit card payments, recorded by a business.

Cash Payments

Transactions where the payment for goods or services is made in cash at the time of purchase.

Accounts Payable

Liabilities representing amounts owed by a company to suppliers for goods and services received but not yet paid for.

Credit Entries

Accounting entries that increase liabilities or equity or decrease assets, reflecting gains to a company's balance sheet.