Which of the Following Is a Consequence of Competition

question 106

Multiple Choice

Which of the following is a consequence of competition?

• A)An unrelenting squeeze on prices and profit.
• B)Positive economic profit in the long run.
• C)Elimination of the most efficient firms.
• D)Price-gouging behavior.

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Definitions:

Unit of Measure Concept

An accounting principle that states all business transactions must be recorded in a single, consistent unit of measurement.

Financial Statements

Comprehensive reports that provide insights into a company's financial health, including balance sheets, income statements, and cash flow statements.

Manufacturing Companies

Businesses that produce finished goods from raw materials through the use of labor, machines, tools, and chemical or biological processing.

Cost Concept

An accounting principle that dictates that all assets are recorded and reported at their original purchase cost rather than their current market value.