The Theory of Perfect Competition Is Built on Several Assumptions

question 13

Multiple Choice

The theory of perfect competition is built on several assumptions, including that

• A) the individual firm can influence demand by advertising.
• B) any firm can easily enter or leave the industry.
• C) the individual firm can affect the price of the product it sells.
• D) there are few producers of an identical product.
• E) each firm must earn economic profits to remain in the industry.

---

Definitions:

Persuasive Claim

A statement or request intended to convince others to agree with a position, action, or viewpoint, especially used in marketing, legal, or customer service contexts.

Moderate Tone

Using a balanced and reasonable voice in communication, avoiding extreme or emotional language to maintain professionalism.

Accusatory Language

Phrases or words used in communication that imply blame or culpability, potentially eliciting defensive reactions.

Persuasive Claims

Statements designed to convince or persuade the audience of a particular viewpoint or action.