Suppose That the Market in Which Bakeries Compete Is a Perfectly

question 61

Multiple Choice

Suppose that the market in which bakeries compete is a perfectly competitive market. Which one of the following reasons does not explain why it is difficult for a bakery to make an economic profit in the long run?

• A)All bakeries are price takers.
• B)All bakeries are able to set the market price.
• C)The threat of entry by potential bakeries.
• D)The demand facing each bakery is perfectly elastic.
• E)All bakeries produce identical goods.

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Definitions:

Pareto Analysis

A statistical technique used to identify the most significant factors in a dataset, based on the principle that a small number of causes typically lead to a large majority of the effects.

Strategic Purchase

The acquisition of goods or services with a forward-looking approach, considering long-term benefits and alignment with an organization's goals.

Description by Brand

An approach to defining or describing products and services based on their brand identity or brand characteristics.

Manufacturing Process

Involves the steps, operations, and methods employed in transforming raw materials into finished goods or products.