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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Definitions:

Acellular

Lacking cells or not composed of cells; often used to describe substances or structures in biological contexts.

Apical Surface

The topmost layer of cells facing the lumen or external environment in epithelial tissue.

Respiratory Infections

Infections that can affect the nose, throat, and lungs, caused by viruses, bacteria, or other organisms, leading to a wide range of symptoms.

Pseudostratified Columnar

A type of epithelium that appears layered due to the varying heights of its cells but is actually a single layer.