In a Perfectly Competitive Resource Market

question 37

Multiple Choice

In a perfectly competitive resource market:

• A)marginal revenue for a product must always equal its price
• B)the business is a price-maker
• C)the business's resource demand curve is horizontal
• D)the business's resource demand curve is vertical
• E)the business's resource supply curve is horizontal

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Definitions:

Statement of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives.

Investing Activities

Transactions that involve the purchase or sale of long-term assets and investment securities that are not considered cash equivalents.

Financing Activities

Transactions with creditors and investors affecting the equity and/or long-term liability aspects of a business's balance sheet.

Direct Method

A cash flow statement preparation approach where actual cash inflows and outflows from operating activities are listed directly.