Scenario 9.2 Consider a Publicly Held Firm (One Whose Stock Shares Are

question 99

Multiple Choice

Scenario 9.2
Consider a publicly held firm (one whose stock shares are traded on the stock exchange) that earned revenue worth $350 million and incurred land, labor, and debt costs worth $320 million. The stockholders who have invested a total of $100 million in this firm could have earned 10 percent return on other comparable investments.
-Which of the following statements characterizes perfect competition?

• A)Producers enjoy complete freedom of entry and exit from the industry.
• B)Producers sell differentiated products.
• C)Producers are price makers.
• D)Consumers are price makers.
• E)The firm is not free to choose the quantity that it wishes to produce.