In Perfect Competition,which Is NOT True

question 98

Multiple Choice

In perfect competition,which is NOT true?

• A) Both concentration ratios and Rothschild indexes tend to be close to zero.
• B) There are a large number of firms, and each is small relative to the entire market.
• C) At least one firm has a perceptible impact on the market price.
• D) Firms produce homogenous goods.

Master the calculation and application of discounts on purchases within the discount period.

Grasp the concept of the perpetual inventory method and its application in accounting for merchandise.

Understand the function and maintenance of the accounts payable subsidiary ledger.

Comprehend the relationship and reconciliation between the accounts payable controlling account and the accounts payable subsidiary ledger.

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Definitions:

Price Elasticity

A measure of the responsiveness of the quantity demanded of a good to a change in its price, illustrating how changes in price can affect consumer demand.

Unit-Elastic

A demand or supply situation where the percentage change in quantity demanded or supplied is equal to the percentage change in price, leading to no change in total revenue.

Price Elasticity

An indicator showing the sensitivity of the demanded quantity of a good to price adjustments, computed by the percentage change in demand relative to the percentage change in price.