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:

Real Options

An approach in finance where choices are treated as derivative securities that managers can use to maximise returns while deferring investment decisions.

Expected NPV

An estimation of the Net Present Value of a project or investment, considering the potential outcomes and their probabilities.

Obligation

A legal or financial duty or commitment one party owes to another, often in the form of debts or contractual agreements.

Flexibility Options

Options within contracts or agreements that allow for adjustments based on varying circumstances or needs.