Under Perfect Competition There Must Be

question 67

Multiple Choice

Under perfect competition there must be

• A)perfect mobility of resources and perfect knowledge.
• B)neither perfect mobility nor perfect knowledge.
• C)perfect mobility but not perfect knowledge.
• D)perfect knowledge but not perfect mobility.

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Definitions:

Preferences

In economics, this refers to the ordering of alternatives based on their utility, showing the subjective tastes and choices of individuals.

Complete

Fully accomplished or having all necessary parts or steps.

Transitivity

Transitivity in decision making refers to the consistency among choices, where if option A is preferred over B and B over C, then A should be preferred over C.

Indifference Curves

Graphical representations used in microeconomics to show different combinations of two goods that give a consumer equal satisfaction and utility.