Which of the Following Is a Feature of a Purely

question 71

Multiple Choice

Which of the following is a feature of a purely competitive market?

• A) Price differences exist between firms producing the same product.
• B) There are significant barriers to entry into the industry.
• C) The industry's demand curve is perfectly elastic.
• D) Products are standardized or homogeneous.

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Definitions:

Commodity 1

A basic good used in commerce that is interchangeable with other goods of the same type, typically referred to when discussing market transactions.

Units of Y

A placeholder term generally referring to quantities or measurements of a variable Y.

Units of X

A measure or quantity of a particular good, product, or factor of production expressed as a discreet unit for analysis or transaction purposes.

Income

The amount of money received by an individual or entity in exchange for labor or services, from investments, or from other sources.