In a Perfectly Competitive Industry, Which of the Following Is

question 395

Multiple Choice

In a perfectly competitive industry, which of the following is a market signal to resource owners?

• A) economic profits
• B) quality of goods
• C) the level of exports in the country
• D) the level of subsidies the industry receives

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Definitions:

External Users

Individuals or entities outside of a company who use its financial information, typically for analysis, investment, or regulatory purposes.

Sole Owner

An individual who exclusively owns a business, bearing all the risks and entitled to all the profits.

Personal Automobile

A privately owned vehicle used for personal transportation, not for business or commercial purposes.

Business Entity Concept

The accounting principle that separates the transactions of a business from those of its owners or other businesses.