Which of the Following Is True Regarding Perfect Competition

question 112

Multiple Choice

Which of the following is true regarding perfect competition?
I. The firms are price takers.
II. Marginal revenue equals the price of the product.
III. Established firms have no advantage over new firms.

• A) I only
• B) I, II and III
• C) I and II
• D) II and III

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Definitions:

Jealousy

An emotion that arises from perceived threats to a relationship or social status, leading to feelings of insecurity or fear of loss.

Anal Stage

A phase in Freud's psychosexual development theory, occurring from ages 18 months to three years, when a child's focus is on controlling bladder and bowel movements.

Obstinate

Showing stubbornness and refusal to change one's opinion or chosen course of action, despite attempts to persuade one to do so.

Stingy

Describing a person or behavior characterized by an unwillingness to spend money or use resources; being miserly or parsimonious.