Which of the Following Statements Is One of the Assumptions

question 51

Multiple Choice

Which of the following statements is one of the assumptions of the theory of perfect competition?

• A) Firms produce a wide variety of versions of the product.
• B) Firms are price setters.
• C) Consumers know the prices charged by each firm.
• D) A firm's entry to the market is regulated by the federal Competition Bureau.
• E) Firms compete with each other by varying their price.

---

Definitions:

Acetic Acid Eardrops

A solution used in the treatment of outer ear infections that works by restoring the normal acidic environment of the ear canal.

Swab

A small piece of absorbent material on a stick or wire base, used to collect samples of substances from various parts of the body for testing or cleansing.

Hydrogen Peroxide

A chemical compound used as an oxidizer, bleaching agent, and antiseptic.