A Perfect Market Is One in Which

question 56

Multiple Choice

A perfect market is one in which:

• A) there are no competitive advantages or asymmetries because all firms have equal access to all the factors to production.
• B) one firm develops an advantage based on a factor of production that other firms cannot purchase.
• C) one participant in the market has more resources than the others.
• D) competition is at a minimum, as each niche market within an industry is served by the company with the greatest competitive advantage.

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Definitions:

Word-of-Mouth

The informal exchange of information between individuals about the merits of products, services, or events.

Formal Channels

These are officially established and structured paths for communication or information flow within an organization.

Tangible Assets

Physical and material assets that have intrinsic value, such as machinery, buildings, and inventory.

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, copyright, and goodwill.