Suppose That the Market in Which Bakeries Compete Is a Perfectly

question 61

Multiple Choice

Suppose that the market in which bakeries compete is a perfectly competitive market. Which one of the following reasons does not explain why it is difficult for a bakery to make an economic profit in the long run?

• A)All bakeries are price takers.
• B)All bakeries are able to set the market price.
• C)The threat of entry by potential bakeries.
• D)The demand facing each bakery is perfectly elastic.
• E)All bakeries produce identical goods.

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Definitions:

Secondary Lymphatic Organ

Sites where immune responses are organized, including lymph nodes, spleen, and tonsils, which filter lymph or blood and house mature lymphocytes.

Spleen

An organ adjacent to the stomach that filters blood, disposes of worn-out red blood cells, and helps fight infection.

Lymph Node

Encapsulated mass of lymph tissue found among lymph vessels.

Thymus Gland

An immune system gland located behind the sternum that produces T-cells for the adaptive immune response.