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 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.