Under Perfect Competition, Which of the Following Determine the Market

question 109

Multiple Choice

Under perfect competition, which of the following determine the market equilibrium?

• A) Price and marginal cost.
• B) Both demand and supply.
• C) Marginal cost and average revenue.
• D) Total cost and a number of suppliers.

---

Definitions:

Statement of Changes

A financial statement delineating how and why specific equity accounts in a company's balance sheet changed over a period.

Net Assets

The total assets of a company minus its total liabilities, representing the owners' equity in the company.

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, typically comprising the balance sheet, income statement, and statement of cash flows.

Profit-Oriented Business

A business that operates with the primary goal of earning revenue in excess of its operating costs.