Which of the Following Is NOT a Characteristic of Perfect

question 351

Multiple Choice

Which of the following is NOT a characteristic of perfect competition?

• A) There are many buyers and sellers.
• B) Each firm determines the market price of its product.
• C) Products are homogeneous.
• D) Buyers and sellers have equal access to information.

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Definitions:

Value Loss

The reduction in the value of an asset, investment, or product, often due to market changes, deterioration, or obsolescence.

Gift

A voluntary transfer of property or funds from one individual to another without expectation of payment or compensation.

Diamond-Water Paradox

A question in economics that points out the contradiction between the high value of diamonds, which are non-essential, and the low value of water, which is essential for survival.

Marginal Utility

The extra pleasure or benefit derived from using one more unit of a product or service.