Which of the Following Best Explains Why Price in Competitive

question 399

Multiple Choice

Which of the following best explains why price in competitive price-taker markets will tend to be driven to the minimum per-unit cost?

• A) homogeneous products.
• B) few sellers.
• C) firms face downward-sloping demand curves.
• D) free entry and exit.

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Definitions:

Appellate Courts

Courts that have the authority to review and change the decisions of lower courts, often focusing on legal errors rather than factual disputes.

Precedent

An earlier event or action regarded as an example or guide to be considered in subsequent similar circumstances.

Judicial Review

The power of courts to assess whether a law, policy, or executive action is in accord with the constitution or law.

Strict Construction

A legal philosophy that interprets the Constitution in a literal and narrow way, focusing closely on the text and the original intentions of the framers.