For Perfect Competition to Arise,it Is Necessary That Market Demand

question 57

Multiple Choice

For perfect competition to arise,it is necessary that market demand be

• A)inelastic.
• B)elastic.
• C)perfectly elastic.
• D)large relative to the minimum efficient scale of a single firm.
• E)small relative to the minimum efficient scale of a single firm.

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Definitions:

Cost Data

Information related to the expenses incurred in the production, operation, or acquisition of goods and services.

Artificial Product Differentiation

The process by which companies make their products appear distinct from those of competitors, through branding or slight modifications, even when the core product is similar.

Concentration

The extent to which market share is dominated by a small number of companies within an industry.

Monopoly Power

The ability of a company to control or dominate an industry or market, setting prices and limiting competition due to lack of viable alternatives.