Which of the Following Is NOT a Characteristic of a Perfectly

question 218

Multiple Choice

Which of the following is NOT a characteristic of a perfectly competitive industry?

• A) There is free entry and exit in the long run.
• B) The industry demand curve is downward sloping.
• C) Each firm produces the same homogeneous product.
• D) Economic profits must be positive in the short run.

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Definitions:

Open-Economy Macroeconomic Model

A model that analyzes an economy that is engaged in international trade and investment flows.

Domestic Investment

The total amount of money invested in the resources within a country's borders, including but not limited to businesses, infrastructure, and technology.

Open-Economy Macroeconomic Model

A framework used to analyze economies that engage in international trade of goods, services, and financial assets.

Tariff

A tax levied on imported and, less commonly, exported goods, used to regulate trade by increasing the price of foreign products to encourage or protect domestic industry.