Which Statement Describes a Necessary Condition for Perfect Competition

question 253

Multiple Choice

Which statement describes a necessary condition for perfect competition?

• A)A small number of firms control a large share of the total market.
• B)Movement into and out of the market is limited.
• C)Firms produce a standardized product.
• D)Extensive advertising is used to promote the firm's product.

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Definitions:

Incidental Damages

Secondary or additional expenses incurred by a non-breaching party to mitigate losses following a breach of contract.

Contract Price

The total agreed-upon amount that will be paid for the completion of contractual obligations.

Anticipatorily Breached

This refers to a situation in law where a party indicates, either through their actions or words, that they will not fulfill their contractual obligations before the performance is due.

Resale

The act of selling an item that has already been purchased from the original seller to another buyer.