Which of the Following Conditions Ensures That Excess Profits Cannot

question 61

Multiple Choice

Which of the following conditions ensures that excess profits cannot persist in a perfectly competitive market over the long run?

• A)Large number of firms in the industry.
• B)Outputs of the firms are perfect substitutes for one another.
• C)Complete information is available to all market participants.
• D)Ease of entry into the market.

---

Definitions:

Vertex

The highest or lowest point of a parabola where it changes direction, or a corner point of a geometric shape.

Focus

In geometry and optics, the point where rays or waves meet or from which they diverge, especially after reflection or refraction.

Function

A relation between a set of inputs and a set of permissible outputs with the property that each input is related to exactly one output.

Vertices

Plural of vertex, referring to the corners or angular points where two or more edges meet in a geometrical shape or graph.