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

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 is true of the model of perfect competition?

A) There is a high degree of product differentiation.
B) Consumers do not have adequate information concerning the prices and quality of products in the market.
C) There are significant barriers to entry and exit.
D) There are only a few, large firms in the market.
E) An individual firm cannot affect the market price.