Which Characteristic of Competitive Markets Is Mainly Responsible for Firms

question 148

Multiple Choice

Which characteristic of competitive markets is mainly responsible for firms making zero economic profits in the long run?

• A) many buyers
• B) many sellers
• C) similar goods
• D) differentiated goods
• E) easy entry into and exit from the market

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Definitions:

Consolidated Net Income

The combined total net income of a parent company and its subsidiaries, after eliminating intercompany transactions and balances.

Noncontrolling Interest

Noncontrolling interest, also known as minority interest, refers to the portion of equity in a subsidiary not owned directly or indirectly by the parent company.

Annual Amortization

The method of distributing the expense of a loan or an intangible asset over a designated timeframe for the purposes of accounting and taxation.

Noncontrolling Interest Balance

Noncontrolling Interest Balance represents the equity in a subsidiary not attributable, directly or indirectly, to a parent company’s shareholders.