A Competitive Market Is One in Which

question 63

Multiple Choice

A competitive market is one in which

• A) there is only one seller,but there are many buyers.
• B) there are many sellers and each seller has the ability to set the price of his product.
• C) there are many sellers and they compete with one another in such a way that some sellers are always being forced out of the market.
• D) there are so many buyers and so many sellers that each has a negligible impact on the price of the product.

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Definitions:

Cash Receipts

Cash receipts refer to the total amount of money received by a business or organization during a specific period, including all forms of currency, checks, and electronic transfers received from customers or clients.

Free Cash Flow

Net cash provided by operating activities adjusted for capital expenditures and dividends paid.

Capital Expenditures

Funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.

Cash Dividends

Payments made by a corporation to its shareholder members as a distribution of profits.