For Perfect Competition to Arise,it Is Necessary That Market Demand

question 57

Multiple Choice

For perfect competition to arise,it is necessary that market demand be

• A)inelastic.
• B)elastic.
• C)perfectly elastic.
• D)large relative to the minimum efficient scale of a single firm.
• E)small relative to the minimum efficient scale of a single firm.

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Definitions:

Earnings Before Interest And Taxes

A measure of a firm's profitability that includes all income and expense items except interest and income tax expenses.

Installation Cost

The expense associated with setting up or putting equipment, infrastructure, or software into operation.

Erosion Cost

Costs that occur when a new project or investment negatively affects the revenues or profits of existing projects or investments.

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