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

---

Definitions:

Self-Presentation

The process by which individuals attempt to control the impressions others form of them in social or professional contexts.

Standards

Established norms or criteria which define acceptable levels of quality, behavior, or performance.

Affect People

A broad term that could relate to how emotions and mood influence human behavior and interaction.

Overjustification Effect

A phenomenon where providing excessive external rewards for an already internally rewarding activity reduces a person's intrinsic motivation.