Accounting Multiple Choice Question – 22 June 2025

Which ONE of the following is associated with the conditions of perfect competition?

Select ONE answer:

1. Suppliers are price-makers
2. A single selling price
3. Differentiated products
4. Heavy advertising helps gain extra market share

Show your workings to arrive at your answer, and explain and justify your reasons:

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This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 2

1. Not correct
2. Correct == > Suppliers are price-takers meaning that they can sell as much as they supply but only if they sell at the market-determined equilibrium price. Differentiated products and advertising are market imperfections, creating imperfect rather than perfect competition.
3. Not correct
4. Not correct

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