Which of the Following Statements Regarding a Competitive Market Is

question 283

Multiple Choice

Which of the following statements regarding a competitive market is not correct?

• A)There are many buyers and many sellers in the market.
• B)Firms can freely enter or exit the market.
• C)Price equals average revenue.
• D)Price exceeds marginal revenue.

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Definitions:

Loan Covenant

A condition in a loan agreement that the borrower must comply with, which can include financial requirements or operational actions.

Financial Statements

Financial statements are formal records of the financial activities and position of a business, person, or other entity, presenting the results of operation and the financial condition including balance sheet, income statement, and cash flow statement.

Regulatory Accounting Principles

Specific accounting principles that are prescribed by a regulatory authority, designed for industries under regulation.

GAAP

Generally Accepted Accounting Principles, a common set of accounting rules and standards that companies follow when preparing financial statements in the United States.