Which of the Following Statements About the Competitive Environment Is

question 52

Multiple Choice

Which of the following statements about the competitive environment is TRUE?

• A) In monopolistic competition a seller has a down-sloping demand curve due to the lack of any substitute products.
• B) In pure competition, an individual firm is usually faced with a very inelastic demand curve.
• C) Firms in oligopoly should avoid price cutting.
• D) The industry demand curve in oligopoly is usually horizontal.
• E) All of the above.

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Definitions:

Company Books Adjustment

Modifications made to a company's financial records to correct errors or account for unrecorded transactions.

Interest Revenue

Income earned by a company from the interest it charges on loans or from interest-bearing investments.

Earned

A term referring to revenues or incomes that have been generated from business activities or services provided.

Bank Charges

Fees assessed by a bank for its services or as penalties for not meeting specific account requirements.