Which of the Following Statements Is True of a Perfectly

question 261

Multiple Choice

Which of the following statements is true of a perfectly competitive market?

• A) Innovation is less likely in a competitive market because of the free entry and exit of firms.
• B) Innovation is likely in a competitive market because of the free entry and exit of firms.
• C) The firms in a competitive market invest more in research and development because they face an inelastic demand curve.
• D) The firms in a competitive market invest more in research and development because their demand for resources is perfectly elastic.

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Definitions:

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A category of literary composition characterized by a particular style, form, or content, such as novel, poetry, or drama.

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Federalist Sympathy

Refers to the support or alignment with Federalist principles, including a strong central government and support for commerce and industry, primarily in the early United States.

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A political party in the United States in the late 18th and early 19th centuries, founded by Thomas Jefferson and James Madison, advocating for states' rights and agricultural interests.