Suppose That the Market in Which Bakeries Compete Is a Perfectly

question 61

Multiple Choice

Suppose that the market in which bakeries compete is a perfectly competitive market. Which one of the following reasons does not explain why it is difficult for a bakery to make an economic profit in the long run?

• A)All bakeries are price takers.
• B)All bakeries are able to set the market price.
• C)The threat of entry by potential bakeries.
• D)The demand facing each bakery is perfectly elastic.
• E)All bakeries produce identical goods.

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Definitions:

Consideration Skills

The ability to show thoughtfulness and care towards others' feelings, needs, and circumstances within interpersonal interactions.

First-Line Supervisor

A managerial position that serves as the initial level of management, directly overseeing and managing the work of entry-level or operational employees.

Productivity

The measure of efficiency of a person, machine, factory, or system in converting inputs into useful outputs.

High-Performing

Describes individuals, teams, or organizations that consistently achieve outstanding results relative to their peers or objectives.