Which of the Following Is Not a Characteristic of a Perfectly

question 488

Multiple Choice

Which of the following is not a characteristic of a perfectly competitive market?

• A)There are many buyers and sellers.
• B)Firms can freely enter and exit the market.
• C)Many firms have market power.
• D)Firms sell very similar products.

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Definitions:

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations, calculated as current assets divided by current liabilities.

Marketable Securities

Financial instruments or assets that can be easily converted into cash, typically including stocks and bonds.

Common Stock

A type of security that represents ownership in a corporation, with holders having a claim on the company's profits in the form of dividends.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.