Four characteristics or conditions must be present for a perfectly competitive market structure to exist. First, there must be many firms in the market, none of which is large in terms of its sales. Second, firms should be able to enter and exit the market easily. Third, each firm in the market produces and sells a nondifferentiated or homogeneous product. Fourth, all firms and consumers in the market have
complete information about prices, product quality, and production techniques. Price‐taking behavior. A firm that is operating in a perfectly competitive market will be a price‐taker. A price‐taker cannot control the price of the good it sells; it simply takes the market price as given. The conditions that cause a market to be perfectly competitive also cause the firms in that market to be price‐takers. When there are many firms, all producing
and selling the same product using the same inputs and technology, competition forces each firm to charge the same market price for its good. Because each firm in the market sells the same, homogeneous product, no single firm can increase the price that it charges above the price charged by the other firms in the market without losing business. It is also impossible for a single firm to affect the market price by changing the quantity of output it supplies because, by assumption, there are many
firms and each firm is small in size.
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Which is NOT an essential element of an ordinary annuity ?
A. The amounts of all payments are equal.
B. The payments are made at equal interval of time.
C. The first payment is made at the beginning of the first period.
D. Compound interest is paid on all amounts in the annuity.
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Engineering Economics
Law of diminishing return Law of supply and demand Law of demand Law of supply Law of diminishing return Law of supply and demand Law of demand Law
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All of these Profitability ratio Turnover ratio Liquidity ratio All of these
Engineering Economics
Double taxation is a disadvantage of which business organization? Engineering Economics
Which one of the following is included in financial ratios of the firm?
Profitability ratio
Turnover ratio
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Engineering Economics
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?
P 6,222.39
P 6,999.39
P 6,292.93
P 6,922.93
P 6,222.39
P 6,999.39
P 6,292.93
P 6,922.93
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Engineering Economics
What type of bond which can be redeemed before maturity date?
Callable bond
Registered bond
Incorporators bond
Preferred bond
Callable bond
Registered bond
Incorporators bond
Preferred bond
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Engineering Economics
Annuities involve:
All payments of equal amount
All of these
A series of payments
Payment at equal time intervals
All payments of equal amount
All of these
A series of payments
Payment at equal time intervals
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