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

---

Definitions:

Louis Philippe

Louis Philippe was the King of the French from 1830 to 1848, known for his liberal policies and ruling during the period known as the July Monarchy.

Eighteenth Brumaire

The event on November 9, 1799, by the French Revolutionary calendar (Brumaire 18), when Napoleon Bonaparte overthrew the French government, establishing himself as the First Consul and leading to his eventual dictatorship.

Louis Napoleon

Napoleon III, the nephew of Napoleon Bonaparte, who became the first President of France and then Emperor, leading France during significant industrial expansion in the 19th century.