A Perfect Market Is One in Which

question 56

Multiple Choice

A perfect market is one in which:

• A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.
• B) one firm develops an advantage based on a factor of production that other firms cannot purchase.
• C) one participant in the market has more resources than the others.
• D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.

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Definitions:

Endoderm

The innermost layer of cells or tissue of an embryo in early development that gives rise to the lining of the digestive and respiratory systems.

Rubella

A contagious viral disease, also known as German measles, that can cause severe birth defects if contracted by a pregnant woman.

Diethylstilbestrol

A synthetic estrogen that was prescribed between the 1940s and 1970s to prevent pregnancy complications, later found to cause health issues in exposed children.

Teratogens

Agents or factors that can cause developmental abnormalities or birth defects in an embryo or fetus.