Perfect Competition Is a Situation in Which

question 95

Multiple Choice

Perfect competition is a situation in which

• A)Every year,owners are likely to earn economic profits.
• B)Every year,owners are likely to earn economic losses.
• C)There are many firms and several buyers or sellers have market power.
• D)There are many firms and no buyer or seller has market power.

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Definitions:

Defective

Refers to a product or item that has a flaw or weakness that prevents it from functioning as intended.

Product Liability Claim

A legal claim made against a manufacturer or seller for releasing a product onto the market that caused harm to the consumer due to its defective nature.

Government Regulation

The act by government bodies to control or supervise certain actions, activities, or industries through the enactment of laws and regulations.

Preempted

A situation where a higher authority or law supersedes or takes precedence over a lower one, often preventing certain actions or regulations.