Which Following Statement Does NOT Apply to a Perfectly Competitive

question 39

Multiple Choice

Which following statement does NOT apply to a perfectly competitive market?

• A) Consumers prefer certain brands over others.
• B) Consumers can shop for the lowest available price.
• C) All firms in the industry are price takers.
• D) There is freedom of entry and exit of firms in the industry.
• E) All firms have realized the possible economies of scale.

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Definitions:

Profit-maximizing

The process of making business decisions that aim to increase the difference between total revenues and total costs to the highest possible level.

Marginal Revenue Product

The additional revenue generated by employing one more unit of a factor, such as labor or capital.

Marginal Revenue Product

The additional revenue generated from using one more unit of an input in the production process.

Wage Rate

The amount of compensation a worker receives per unit time or per unit of output, often expressed per hour or piece.