Which of the Following Statements Is One of the Assumptions

question 49

Multiple Choice

Which of the following statements is one of the assumptions of the theory of perfect competition?

• A)Firms produce a wide variety of versions of the product.
• B)Firms compete with each other by varying their price.
• C)Firms are price setters.
• D)A firm's entry to the market is regulated by the federal Competition Bureau.
• E)Consumers know the prices charged by each firm.

---

Definitions:

Specified Price

A determined cost set for a product or service, agreed upon by the seller and the buyer.

Rule 506

A provision of the Securities Act that allows companies to raise unlimited capital through private placements without extensive registration with the SEC.

Regulation D

A set of SEC regulations offering exemptions from the registration requirements for certain private placements of securities.

Securities Act of 1933

A U.S. law enacted to regulate the offer and sale of securities, primarily aimed at preventing deceit, misrepresentations, and other fraud in the securities industry.