Which of the Following Is NOT a Characteristic of a Perfectly

question 52

Multiple Choice

Which of the following is NOT a characteristic of a perfectly competitive industry?

• A) Firms seek to maximize profits.
• B) Profits may be positive in the short run.
• C) There are many firms.
• D) Products are differentiated.

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Definitions:

Majority Vote

A voting outcome where more than half of the votes cast decide an issue or election.

Common Stock

Corporate stock that does not convey any preferences to its holders.

Corporation

A legal entity formed by issuing stock to investors, who are the owners of the corporation.

Preferences

Preferences typically involve decisions or policies that give priority or advantage to particular individuals or groups, often seen in legal contexts such as bankruptcy.