Competitive Markets Exist When

question 72

Multiple Choice

Competitive markets exist when

• A) there are so many buyers and sellers that each has only a small impact on the market price and the market output.
• B) there are more buyers than sellers,giving the buyers market power.
• C) there are more sellers than buyers,giving the sellers market power.
• D) accounting profits become zero because of price wars.
• E) prices are so low that everyone who wants the good or service gets the good or service.

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Definitions:

Carry Forward

A tax policy that allows individuals or companies to use a current year's tax losses to offset future taxable income.

Section 1231

A section of the U.S. tax code that allows for the favorable tax treatment of gains and losses on the sale or exchange of business property.

Aggregate

is the total amount or sum of individual parts combined.

Ordinary

Refers to income or transactions that are common or usual within the context of business and taxes.