Which of the Following Is Not a Characteristic of Perfect

question 22

Multiple Choice

Which of the following is not a characteristic of perfect competition?

• A) Ease of entry and exit.
• B) A few large firms dominate the market.
• C) The product is homogeneous.
• D) There are many buyers.

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Definitions:

Average Income

The mean amount of earnings generated over a specified period of time, taking into account all revenue sources.

Cash Payback Method

The cash payback method is a capital budgeting method that estimates the time required for a project to generate cash flows sufficient to recoup the initial investment.

Average Rate Of Return Method

An investment appraisal technique that calculates the expected return of an investment by averaging its annual profits and dividing by its initial cost.

Net Present Value Method

A method used in capital budgeting and investment planning that calculates the difference between the present value of cash inflows and the present value of cash outflows over a period of time.