Which Firm Is Most Likely to Meet the Condition for Perfect

question 57

Multiple Choice

Which firm is most likely to meet the condition for perfect competition that resources are mobile?

• A)A farm
• B)A sidewalk pretzel vendor
• C)A department store
• D)A movie theater

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Definitions:

Barriers to Entry

Restrictions or obstacles that prevent new competitors from easily entering an industry or area of business.

Unlimited Market Power

A hypothetical situation where a company or entity can set the market price for its product without any competitive constraint.

Monopolists

Entities that hold exclusive control over the production and sale of a particular good or service, eliminating competition in the marketplace.

Barriers to Entry

Barriers consisting of financial, bureaucratic, or legal hindrances that restrict the entry of new players into a market or business sector.