Which of the Following Assumptions About Perfectly Competitive Markets Is

question 24

Multiple Choice

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

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

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Definitions:

Environmental Issues

Problems related to the environment such as pollution, climate change, and biodiversity loss that affect natural ecosystems and human societies.

Dominant Social Paradigm

The capitalist view supported by an ideology that legitimates the domination of nature for the material benefit of humans.

Capitalism

An economic system characterized by private or corporate ownership of capital goods, by investments that are determined by private decision, and by prices, production, and the distribution of goods that are determined mainly by competition in a free market.

Species Diversity

The number of species that exist in an ecosystem.