Which of the Following Is Not a Characteristic of a Perfectly

question 119

Multiple Choice

Which of the following is not a characteristic of a perfectly competitive market?

• A)There is free entry and exit.
• B)There are many buyers and sellers.
• C)Sellers must accept the price the market determines.
• D)Different sellers sell differentiated products.

---

Definitions:

Profit-maximizing

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.

Least-cost Combination

An economic principle where businesses aim to produce a given level of output at the minimum possible cost by appropriately combining resources.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or provide services.

Substitutability

The degree to which one product can be replaced by another in the eyes of the consumer.