Which Characteristic Does Not Describe a Perfectly Competitive Market

question 3

Multiple Choice

Which characteristic does not describe a perfectly competitive market?

• A)Firms produce identical or nearly identical products
• B)Market price is beyond the control of any individual firm
• C)A firm's demand curve is perfectly horizontal at the market price
• D)Industry-level price elasticity is finite
• E)Firm-level price elasticity of demand facing another perfect competitor is infinite

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Definitions:

Interlocking Directorates

Are formed when an individual sits on the board of directors of two or more non-competing companies.

Conglomerates

Are large corporations that operate in several industries at the same time.

Heredity

The conveyance of genetic traits, including physical and mental features, from ancestors to descendants.

Intelligence

is the mental capacity to learn from experience, solve problems, and use knowledge to adapt to new situations.