Which of the Following Is Inconsistent with the Model of Perfect

question 58

Multiple Choice

Which of the following is inconsistent with the model of perfect competition?

• A)ease of entry into an industry
• B)ease of exit from an industry
• C)many buyers and sellers in the industry
• D)advertising of product differences in the industry
• E)a horizontal demand curve facing each firm in the industry

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold before accounting for other expenses.

Intra-Entity Sales

Transactions of goods, services, or assets between divisions within the same organization.

Significant Influence

The capacity to affect the financial and operating policies of another entity without having control or full ownership, often through ownership of a sizable percentage of voting shares.

Net Income

The net profit figure for a company, achieved by subtracting all operational costs and tax liabilities from its revenue.