Under Perfect Competition

question 74

Multiple Choice

Under perfect competition

• A)information about prices is hard to obtain.
• B)there is a maximum number of firms that can enter the market.
• C)if a firm exits the market, price will rise.
• D)transaction costs are low.

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Definitions:

Fish

Aquatic, gill-bearing animals that lack limbs with digits.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than its competitors, leading to a more efficient allocation of resources.

Geegaws

Novelty items or gadgets, often considered trivial or unnecessary.

Doodads

A colloquial term often used to refer to non-specific or miscellaneous items, gadgets, or parts without particular naming.