Which of the Following Is (Are) Basic Feature(s) of a Perfectly

question 77

Multiple Choice

Which of the following is (are) basic feature(s) of a perfectly competitive industry?

• A)Buyers and sellers have perfect information.
• B)There are no transaction costs.
• C)There is free entry and exit in the market.
• D)All of the statement associated with this question are correct.

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Definitions:

Supply Curve

A graphical representation showing the relationship between the price of a good or service and the quantity that producers are willing and able to sell at that price.

Price Elasticity

A measure of how sensitive the quantity demanded of a good is to a change in its price.

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded, typically downward sloping.

Supply Curve

A graph showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell at each price level.