Which of the Following Is True of Perfectly Competitive Firms

question 134

Multiple Choice

Which of the following is true of perfectly competitive firms?

• A) It is difficult for entrepreneurs to become suppliers of a product in a perfectly competitive market structure.
• B) A perfectly competitive firm has a perfectly elastic supply curve.
• C) In a perfectly competitive market, an individual seller can change his price and it will not alter the output he sells.
• D) None of the above are true.

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Definitions:

Balance Sheet

A balance sheet is a financial statement that provides a snapshot of a company’s financial position, showing its assets, liabilities, and equity at a specific point in time.

Income Statement

A financial statement that shows a company's revenues and expenses over a particular period, resulting in a profit or loss.

Consignment Basis

A business arrangement where goods are left with a third party to sell, and the owner of the goods receives payment only when the items are sold.

Year-End Inventory

The total value of all unsold goods held by a company at the end of its fiscal year, used for financial and tax reporting purposes.