Which of the Following Is Not a Necessary Condition of a Perfect

question 37

Multiple Choice

Which of the following is not a necessary condition of a perfect market?

• A)no taxes
• B)no information differences among investors
• C)no risk
• D)no transaction costs

---

Definitions:

Restricts Output

A strategy or condition that limits the amount of goods and services produced, often to maintain prices or due to limited resources.

Competitive Industry

An industry where numerous sellers offer products or services that are similar, ensuring no single entity has significant market power to determine prices.

Covert Collusion

An implicit secret agreement between parties to fix prices, divide markets, or rig bids without explicit verbal agreement, making it hard to detect and prosecute.

Cartel

An association of independent businesses organized to control prices and production, restrict competition, and monopolize markets.