Which of the Following Is Not a Reason Perfect Competition

question 529

Multiple Choice

Which of the following is not a reason perfect competition is a useful simplification, despite the diversity of market types we find in the world?

• A)Perfectly competitive markets are the easiest to analyze because everyone participating in the market takes the price as given by market conditions.
• B)Some degree of competition is present in most markets.
• C)There are many buyers and many sellers in all types of markets.
• D)Many of the lessons that we learn by studying supply and demand under perfect competition apply in more complicated markets as well.

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Definitions:

Endorser

One who issues an endorsement.

Instrument

A formal written document effecting legal rights or obligations, such as a contract or financial document.

Dishonored

A term referring to a financial instrument, such as a check, that has been presented for payment but refused by the bank or payer.

Commercially Reasonable

Actions that a prudent individual or entity would take in a commercial context, considering the circumstances reasonably expected in such a situation.