If a Market Comes Close to Meeting (But Does Not

question 158

Multiple Choice

If a market comes close to meeting (but does not perfectly meet) all the assumptions of the theory of perfect competition, it follows that

• A)the market is not perfectly competitive.
• B)the theory of perfect competition still may be able to predict behavior in the market.
• C)firms in the market cannot be price takers.
• D)firms in the market do not try to maximize profit.
• E)a and c

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Definitions:

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Negotiable Instruments

Financial documents that guarantee the payment of a specified sum of money, either on-demand or at a set time.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize statutes across the states to facilitate easier interstate commerce.

World Trade Organization

An international organization that regulates international trade between nations, aiming to ensure that trade flows as smoothly, predictably, and freely as possible.