A Perfectly Competitive Industry Exists Under Which of the Following

question 108

Multiple Choice

A perfectly competitive industry exists under which of the following conditions?
I. The product sold is similar across firms.
II. There are many sellers, each small relative to the total market.
III. There are many sellers, each with total assets less than $2 million.
IV. The threat of competition exists from potential sellers that have not yet entered the market.

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

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Definitions:

Burglaries

Illegal entry into a building or other premises with the intent to commit theft, vandalism, or another crime.

Poisson Distribution

A statistical distribution that predicts the probability of a given number of events occurring in a fixed interval of time or space.

Probability

A measure expressing the likelihood of a specific event occurring, typically ranging from 0 (impossible) to 1 (certain).

Calls

Telecommunication interactions involving the exchange of voice messages over distances.