Which of the Following Assumptions Applies to Both Perfect Competition

question 166

Multiple Choice

Which of the following assumptions applies to both perfect competition and monopolistic competition?

• A)many buyers and few sellers
• B)easy entry into the market, but difficult exit from the market
• C)profit is maximized at the level of output for which MR = MC
• D)firms produce and sell a homogeneous product

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Definitions:

Cognitive Component

The aspect of attitude that involves beliefs, thoughts, and knowledge about the subject.

Need For Achievement

A psychological trait that signifies the drive or motivation to accomplish tasks and attain goals.

Incentive Value

The perceived worth or desirability of a reward that motivates behavior or encourages action towards a goal.

Low Expectation

A belief that a future event or outcome will likely be of lesser quality or significance.