Which of the Following Is NOT a Characteristic of a Perfectly

question 218

Multiple Choice

Which of the following is NOT a characteristic of a perfectly competitive industry?

• A) There is free entry and exit in the long run.
• B) The industry demand curve is downward sloping.
• C) Each firm produces the same homogeneous product.
• D) Economic profits must be positive in the short run.

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Definitions:

R&D Project

Research and Development project, which involves investigative activities that a business or organization undertakes with the intention of making a discovery that can either lead to the development of new products or procedures, or to improvement of existing products or procedures.

R&D Activity

The process of investigating new ideas and refining existing products or processes through research and development efforts.

Expected Returns

The anticipated return on an investment, calculated as an average of all possible returns weighted by their likelihood of occurrence.

Expected Rate of Return

The expected rate of return is the anticipated percentage gain or loss that an investment is projected to generate, based on historical or estimated future performance.