Identify the Truthfulness of the Following Statements

question 63

Multiple Choice

Identify the truthfulness of the following statements. III.In perfectly competitive markets there are no externalities.That is,actions of decision-makers on each others' well being do not extend beyond those effects transmitted by prices.
IV.Partial equilibrium analysis determines equilibrium in a single market,taking the prices and outputs of other markets as fixed.

• A) Both I and II are true.
• B) Both I and II are false.
• C) I is true; II is false.
• D) I is false; II is true.

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Definitions:

Direct

Pertains to costs or actions that can be directly attributed to a specific project, department, or product without any need for allocation.

Indirect Methods

Approaches used in accounting and finance to estimate or calculate values based on indirect indicators or conversions, rather than direct measurement.

Three Sources

Refers to the original means or origins of information, funds, or support, often used in various contexts.

Operating

Related to the day-to-day functions and tasks involved in running a business or an organization.