In Perfect Competition

question 292

Multiple Choice

In perfect competition

• A) there are restrictions on entry into the market.
• B) firms in the market have advantages over firms that plan to enter the market.
• C) only firms know their competitors' prices.
• D) there are many firms that sell identical products.

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Definitions:

Incentives

Factors, monetary or non-monetary, that motivate individuals to perform actions that they might not otherwise choose to do.

Efficiently

Achieving a goal or producing output with the minimum amount of waste, expense, or unnecessary effort.

Common Resource

A resource like air or water that is accessible to all but is susceptible to overuse and depletion because it is not privately owned.

Public Good

Goods or services that are made available to the entire society for free, by the government or a private organization or individual, not aimed at generating profit.