Which Statement Is NOT Characteristic of Perfect Competition

question 54

Multiple Choice

Which statement is NOT characteristic of perfect competition?

• A)All firms produce the same standardized product.
• B)There are many producers,and each has only a small market share.
• C)There are many producers;one firm has a 25% market share,and all of the remaining firms have a market share of less than 2% each.
• D)There are no obstacles to entry into or exit from the industry.

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Definitions:

Vocational School

An educational institution designed to provide vocational education, or technical skills required to perform the tasks of a particular and specific job.

Revenue Variances

Differences between actual revenue and budgeted or forecasted revenue figures.

Budgets

Financial plans that estimate future income, expenditures, and resources over a specific period.

Standard Cost System

A cost accounting system that compares actual costs to predetermined or standard costs to help in budgeting and variance analysis.