Which of the Following Is Not a Basic Characteristic of Pure

question 63

Multiple Choice

Which of the following is not a basic characteristic of pure competition?

• A) Considerable nonprice competition.
• B) No barriers to the entry or exit of firms.
• C) A standardized or homogeneous product.
• D) A large number of buyers and sellers.

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, contrary to what happens with a normal good.

Net Supplier

An entity that provides more of a good or service to the market than it consumes from it.

Normal Good

A category of product that sees a rise in demand as the consumer's income grows, indicating a direct correlation between income levels and demand.

Backward-Bending

Refers to the backward-bending supply curve of labor, indicating that beyond a certain wage level, labor supply decreases as income and substitution effects impact workers' willingness to work.