Which of the Following Is NOT an Assumption That Economists

question 293

Multiple Choice

Which of the following is NOT an assumption that economists make when using the model of perfect competition?

• A) Firms seek to maximize profits.
• B) The products of each firm in a particular market are identical.
• C) Each firm sets its price equal to its average total cost.
• D) Entry and exit are easy.

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Definitions:

Agriculture

The practice of cultivating soil, growing crops, and raising livestock for food, fiber, and other products.

Soviet Union

A former federation of Communist republics that existed from 1922 to 1991, officially known as the Union of Soviet Socialist Republics (USSR).

Water Scarcity

Water scarcity is a situation in which the available water supply is insufficient to meet the demands of water use within a region.

Runoff

The portion of rainfall, melted snow, or irrigation water that flows across the ground's surface and is not absorbed into the soil, often reaching rivers, lakes, and oceans.