The Model of Perfect Competition Assumes That

question 4

Multiple Choice

The model of perfect competition assumes that:

• A)there is information asymmetry in the market.
• B)individual suppliers face a downward sloping demand curve.
• C)all goods in that market are homogeneous.
• D)there are a small number of sellers in the market.

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Definitions:

Labor-saving Technological Change

It refers to innovations or advancements in technology that reduce the amount of labor required to produce goods or services, often leading to increased productivity.

Telephone Operators

Individuals responsible for assisting customers in making telephone connections, including placing and connecting calls or providing information.

Machine-sewn Products

Goods that are manufactured using sewing machines, often implying mass production and consistent quality.

Wage Rate

The amount of money paid to an employee per unit of time, such as an hour or a week.