If Perfect Competition Existed Everywhere, Along with Frictionless Exchange, Perfect

question 155

Multiple Choice

If perfect competition existed everywhere, along with frictionless exchange, perfect information, and constant returns to scale,

• A)consumers would carry out transactions directly with resource suppliers
• B)firms would not have the information necessary to calculate marginal productivities of resources
• C)entrepreneurs would be needed to collect information
• D)consumers would produce output and then engage in barter
• E)the economy would be organized into one large firm

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Definitions:

PASS Method

Acronym for Pull, Aim, Squeeze, and Sweep, a technique used for effectively using a fire extinguisher.

Fire Extinguisher

A device that discharges a substance to put out a fire, often by cooling the fire, cutting off its oxygen supply, or both.

Substage

A division or smaller part that forms a component of a larger stage or phase.

Direct Contact

Physical interaction between an infected person or contaminant and a susceptible host, leading to the potential transfer of disease.