A Perfectly Competitive Market Is Characterized by

question 89

Multiple Choice

A perfectly competitive market is characterized by

• A)firms that are price setters.
• B)firms that each face a downward-sloping demand curve.
• C)firms that each sell a unique good or service.
• D)buyers who are unaware of the price charged by each firm.
• E)no restrictions on entry into the market.

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Definitions:

Albert Ellis

A psychologist known for developing Rational Emotive Behavior Therapy (REBT), a form of cognitive-behavioral therapy focusing on changing irrational beliefs.

Aaron Beck

A psychiatrist known as the father of cognitive therapy, which focuses on changing negative thoughts and beliefs.

Placebo Effect

The apparent success of a medication or treatment due to the patient’s expectations or hopes rather than to the drug or treatment itself.

Novelty Bias

The tendency of individuals to prefer novel objects or experiences over familiar ones.