To Determine Whether a Market Is Perfectly Competitive, Economists Examine

question 138

Multiple Choice

To determine whether a market is perfectly competitive, economists examine the

• A)number of firms in the market.
• B)similarities among the products of the different firms in the market.
• C)ease of entry and exit by firms in the market.
• D)All of the responses are correct.

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Definitions:

Mental Grouping

The cognitive process of organizing concepts, objects, or ideas into categories based on common properties to simplify understanding and memory.

Step-by-Step

Involves breaking down information, processes, or problems into smaller, manageable parts to facilitate understanding or completion.

Belief Perseverance

Clinging to one's initial conceptions after the basis on which they were formed has been discredited.

Availability Heuristic

Estimating the likelihood of events based on their availability in memory; if instances come readily to mind (perhaps because of their vividness), we presume such events are common.