Which of the Following Characteristics Does Perfect Competition Share with Monopolistic

question 226

Multiple Choice

Which of the following characteristics does perfect competition share with monopolistic competition?

• A)price-taking firms
• B)zero long-run economic profit
• C)homogeneous product
• D)some barriers to entry
• E)economies of scale in production

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Definitions:

Yearly Save

Yearly save refers to the amount of money or cost savings that an organization or individual aims to achieve within a one-year period.

Straight-Line Method

A method of calculating depreciation of an asset which assumes the asset will lose an equal amount of value each year over its useful life.

Diminishing Value

A method of depreciation where an asset loses value at a decreasing rate over time, reflecting its declining usefulness or productivity.

Accounting Rate of Return

A financial ratio that measures the return on investment from a project based on its net income.