To Have Competition as Economists Define It

question 197

Multiple Choice

To have competition as economists define it,

• A)you need many firms in an industry,with no one firm having any influence over price.
• B)you need a couple of firms in the industry,with each having significant influence over the price.
• C)you need many firms in an industry,and it doesn't matter if one firm has influence over price.
• D)All of these statements are true.

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Definitions:

Trade-in Allowance

The amount credited to the buyer by the seller for a traded-in asset toward the purchase of a new asset.

Cost Basis

The original value or purchase price of an asset or investment, used to calculate capital gains or losses for tax purposes.

Accumulated Depreciation

The total depreciation costs applied to a fixed asset from the time of its acquisition.

Fair Market Value

The price at which a willing buyer and a willing seller, both possessing reasonable knowledge of relevant facts, would exchange an asset.