Which of the following explains why a perfectly competitive firm is a price taker?Multiple choice question.A perfectly competitive firm offers a large fraction of total market supply and, therefore, determines market priceA perfectly competitive firm produces all of total market supply and, therefore, must accept the price determined by the marketA perfectly competitive firm offers only a negligible fraction of total market supply and, therefore, must accept the price determined by the marketA perfectly competitive firm offers only a negligible fraction of total market supply and, therefore, must set the price for the market

A perfectly competitive market involves firms that are price takers. This guarantees:Multiple choice question.consumers receive the lowest prices.producers receive the highest prices.easy entry and exit.a large number of buyers and sellers.

Item10Item 10Which of the following is correct?Multiple ChoiceBoth perfectly competitive and monopolistic firms are "price takers".Both perfectly competitive and monopolistic firms are "price makers".A perfectly competitive firm is a "price taker," while a monopolist is a "price maker".A perfectly competitive firm is a "price maker," while a monopolist is a "price taker".

Firms in perfectly competitive markets are price takers because ___________.a.each firm is very largeb.there are no good substitutes for their goodsc.many other firms produce identical productsd.their demand curves are downward sloping

. Perfectly competitive firms are price takers because a. each firm is very large. b. there are no good substitutes for their goods. c. many other firms produce identical products. d. their demand curves are downward sloping 9. A price-taking firm a. cannot influence the price of the product it sells. b. talks to rival firms to determine the best price for all of them to charge. c. sets the product's price to whatever level the owner decides upon. d. asks the government to set the price of its product. 10. A monopoly is a market with a. no barriers to entry. b. many substitutes. C. many suppliers. d. one supplier 11.Which of the following advantages does a budget mostly provide? a. Coordination is increased b. Planning is emphasized c. Coordination is continuous d. Comparison of actual versus budgeted data. 12.Budgets are related to which of the following management functions? a. Planning b. Performance evaluation c. Control d. All of these 13.A formal written statement of management ‘s plans for the future, packaged in financial items, is a a. Responsibility report b. Performance report. c. Cost of production report d. Budget 14.The budget approach that is more relevant when the continuance of an activity or operation must be justified on the basis of its need or usefulness to the organization. a. The incremental approach b. The zero-based approach c. The base-line approach d. Both(a)and(b) are there. 15. series of budgets for varying levels of activity is a a. Variable cost budget b. Master budget c. Flexible budget d. Aero-based budget 16.A common starting point in the budgeting process is a. Expected future net-income b. Past performance c. To motivate the sales force. d. A clean slate, with no expectation. 17.Budgeting process in which information flows top down and bottom up is referred to as: a. Continuous budgeting b. Perpetual budgeting c. Participative budgeting d. Joint budgeting 18.Zero-based budgeting: a. Involves the review of changes made to an organisation’s original budget. b. Does not provide a summary of annual projections. c. Involves the review of each cost component from cost-benefit perspective d. Emphasizes the relationship of effort to projected annual reports. 19. Incremental Budgeting’ refers to a. Line-by-line approach of expenditure b. Setting budget allowances based on prior year expenditure c. Requiring top management approval of increases in budgets d. Using incremental revenues and costs in budgeting.

Which of the following is NOT true regarding perfectly competitive markets?Group of answer choicesIt is difficult or impossible for a firm to enter and compete in the marketAll firms in the market are price takersHomogenous goods are sold by the firmsThe market contains many buyers and sellers