Which of the Following Assumptions About Perfectly Competitive Markets Is

question 9

Multiple Choice

Which of the following assumptions about perfectly competitive markets is primarily responsible for the horizontal demand curve facing the individual firm?

• A)freedom of entry and exit in the industry
• B)strategic behaviour
• C)differentiated product
• D)each firm is small relative to the size of the industry
• E)consumers are aware of all firms' prices

---

Definitions:

Submartingale

A type of stochastic process where the conditional expected future value of the process is at least equal to the present value.

Expected Price

The forecasted price of an asset, based on current information and analysis.

Intensively Sold

A marketing strategy that aims for widespread distribution and makes the product available at as many retail locations as possible.

Stock Prices

The cost of purchasing a share of a company, which fluctuates based on supply and demand, company performance, and market conditions.