Which of the Following Assumptions About Perfectly Competitive Markets Is

question 20

Multiple Choice

Which of the following assumptions about perfectly competitive markets is primarily responsible for firms having zero economic profit in long run equilibrium?

• A)homogeneous 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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