Which of the Following Is NOT a Characteristic of a Perfectly

question 212

Multiple Choice

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

• A) There are large numbers of buyers and sellers.
• B) The firms in the industry produce a homogeneous product.
• C) Sellers have better information about the product than consumers.
• D) Any firm can enter or leave the industry without serious impediments.

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Definitions:

Purchase price

The price at which an item or property is bought.

Conditional sale contract

A sales agreement that transfers ownership of an item to the buyer only after specific conditions are met, usually full payment of the purchase price.

Compounded monthly

The process of calculating interest on both the initial principal and the accumulated interest from previous periods, done on a monthly basis.

Payment-free period

A specified duration during which a borrower is not required to make any payments on a loan.