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:

Natural Capital

The world's stocks of natural assets, including geology, soil, air, water, and all living organisms, which provide humans with a wide range of services.

Fossil Fuels

These are natural fuels such as coal, oil, and natural gas, formed from the remains of living organisms and used for energy.

Nonrenewable Natural Resource

A natural resource, such as fossil fuels or minerals, that cannot be replaced or replenished once it is used, leading to potential depletion.

Timber

Wood that has been processed into beams and planks, a stage in the production process that precedes finished wood products.