Which of the Following Features Is Common to Both Perfectly

question 59

Multiple Choice

Which of the following features is common to both perfectly competitive markets and monopolistically competitive markets?

• A) Firms produce homogeneous goods.
• B) There is free entry.
• C) Long-run profits are zero.
• D) There is free entry and long-run profits are zero.

---

Definitions:

Insurance Expense

The cost incurred by a business to secure insurance coverage against various risks, recorded as a periodic expense.

Factory Building

A structure purposely designed and constructed for manufacturing operations, housing machinery, equipment, and workers.

Product Cost

The total expense incurred to produce a product, inclusive of direct materials, labor, and overhead costs.

Period Costs

Costs not directly associated with the manufacturing process, recognized in the accounting period they arise.