Which of the Following Is Not a Characteristic of a Perfectly

question 198

Multiple Choice

Which of the following is not a characteristic of a perfectly competitive market structure?

• A)There are a very large number of firms that are small compared to the market.
• B)All firms sell identical products.
• C)There are no restrictions to entry by new firms.
• D)There are restrictions on exit of firms.

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Definitions:

Futures Price

The agreed price for the future delivery of an asset in a futures contract market.

Spot Exchange Rate

The current exchange rate at which one currency can be traded for another immediately.

Arbitrage

The strategy of exploiting price differences of identical or similar financial instruments across different markets to gain profit with minimal risk.