In a Perfectly Competitive Market Structure Any Firm Can Enter

question 22

Multiple Choice

In a perfectly competitive market structure any firm can enter or leave the industry without serious impediments. This implies

• A) the products sold will be alike.
• B) firms will move labor and capital in pursuit of profit-making opportunities to whatever business venture gives them the highest return on their investment.
• C) no one buyer or seller has any influence on price.
• D) consumers are able to find out about lower prices charged by other firms.

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Definitions:

Kilometer

A unit of length in the metric system, equal to 1,000 meters.

Physician

A healthcare professional who diagnoses and treats illnesses and injuries in patients.

Medication

substances used to diagnose, treat, cure, or prevent disease and alleviate symptoms.

Milligrams

A unit of mass or weight in the metric system, equal to one thousandth of a gram, commonly used to measure small quantities of material.