If All Conditions for a Perfectly Competitive Market Are Met

question 26

Multiple Choice

If all conditions for a perfectly competitive market are met,

• A) firms face sunk cost when entering the market.
• B) firms' demand curves are horizontal.
• C) the market demand curve is horizontal.
• D) the firms' demand curves are downward-sloping.

---

Definitions:

Path-Goal Model

A leadership theory that stipulates the leader's job is to assist followers in attaining their goals and to provide direction or support needed to ensure that their goals are compatible with the overall objectives of the group or organization.

Situational Leadership

A leadership style where the leader adjusts their approach based on the situation, employee readiness, and task complexity.

Expectancy Motivation Theory

A psychological theory suggesting that an individual's motivation to pursue a certain action is influenced by their expectation of the outcome and the value they place on that outcome.

Mentors

Experienced individuals who provide guidance, advice, and support to less experienced persons, fostering their development and growth.