The Representative Consumer Acts Competitively

question 29

Multiple Choice

The representative consumer acts competitively

• A) when he or she can haggle for a lower price.
• B) when he or she is a price-taker.
• C) when he or she is a price-maker.
• D) if the consumer is large relative to the size of the market.

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Definitions:

Adjusting Entry

An accounting record made to update the financial statements to reflect income earned or expenses incurred but not yet recorded.

Employee Wages

Payment given to workers for their services, usually determined by the hour, day, or work completed.

Net Income

The amount of money remaining after all operating expenses, taxes, and interest have been subtracted from total revenue.

Adjusting Entries

Journal entries made at the end of an accounting period to allocate income and expenditure to the period in which they actually occurred.