The Theory of Perfect Competition Is Built on Several Assumptions,including

question 141

Multiple Choice

The theory of perfect competition is built on several assumptions,including that

• A)the individual firm can affect the price of the product it sells.
• B)the individual firm can influence demand by advertising.
• C)each firm must earn economic profits to remain in the industry.
• D)any firm can easily enter or leave the industry.
• E)there are few producers of an identical product.

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Definitions:

Pectoralis Major

A large muscle in the front of the chest that attaches to the shoulder and sternum, involved in movements of the shoulder and arm.

Deltoid

Refers to the triangular muscle on the shoulder, involved in arm movements and known for its shape.

Circular Sphincter

A circular muscle that constricts or dilates to regulate the passage of substances through an opening in the body, such as the pyloric sphincter in the digestive system.

Peristalsis

The involuntary constriction and relaxation of the muscles of the intestine or another canal, creating wavelike movements that push the contents forward.