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A Market in Which There Are Many Firms, Each of Which

question 27

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A market in which there are many firms, each of which has an insubstantial share of the market; there is free entry into the market and no barriers exist to prevent entry; there is a homogeneous product and all firms in the industry produce exactly the same product; there is perfect factor mobility and the factors of production are free to move between industries; and there is perfect information in the sense that all participants in the market are fully informed about its price and about its profit opportunities is a perfectly competitive market.


Definitions:

Consequences

The outcomes, effects, or results that naturally follow from an action or condition.

Power Outage

A temporary loss of electrical power in a particular area, which can be due to several reasons including technical failures or maintenance work.

Rim

The outer edge of a circular object, such as a wheel or a basketball hoop.

Puncture

A small hole made by a sharp object in a surface.

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