Which of the Following Is True of a Perfectly Competitive

question 93

Multiple Choice

Which of the following is true of a perfectly competitive firm?

• A)It is difficult for entrepreneurs to become suppliers of a product in a perfectly competitive market structure.
• B)A perfectly competitive firm has a perfectly elastic supply curve.
• C)In a perfectly competitive market, an individual seller can change his or her price and it will not alter the output he or she sells.
• D)A perfectly competitive seller cannot alter the quantity supplied of his or her good.
• E)In a perfectly competitive market, producers and consumers have complete knowledge of the market.

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Definitions:

Delivery Expense

Delivery expense refers to costs incurred by a business to transport its goods to customers, including shipping, freight, and postal charges.

Other Expense

Costs not directly tied to the production of goods or services, such as office supplies or utilities.

Interest Expenses

Costs incurred by an entity for borrowed funds, typically reflected in the income statement.

Selling Expenses

Costs incurred directly from the selling of products or services, such as advertising and sales commissions.