The Main Characteristic of the Perfectly Competitive Market That Causes

question 286

Multiple Choice

The main characteristic of the perfectly competitive market that causes economic profits and losses to go to zero in the long run is

• A) many buyers and sellers.
• B) homogeneous products.
• C) known prices.
• D) free entry and exit.

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Definitions:

Diversification

Diversification is a risk management strategy that involves spreading investments across various financial instruments, industries, or other categories to minimize risk.

JIT Systems

Systems based on the just-in-time principle that focus on continuous improvement by eliminating waste and only producing what is needed, when it is needed.

Layout

The arrangement of physical elements in a space, such as machinery in a factory or furniture in a room, optimizing efficiency and workflow.

Distance Reduction

Strategies or actions taken to decrease the physical distance between processes or elements, often to improve efficiency or reduce transportation costs.