Which Is True Under Conditions of Pure Competition

question 2

Multiple Choice

Which is true under conditions of pure competition?

• A) There are differentiated products.
• B) The market demand curve is perfectly elastic.
• C) No single firm can influence the market price by changing its output.
• D) Firms that cannot make pure or economic profits go bankrupt.

---

Definitions:

Unreasonably Dangerous Products

Products that pose a risk of injury to the consumer beyond what would be expected through typical use.

Construction Projects

Planned undertakings involving the erection, renovation, or demolition of a structure or infrastructure.

Causation Link

The relationship or connection between an act and its effect, often used in legal contexts to establish liability or fault by demonstrating how one event directly leads to another.

Intervening Cause

An event that occurs after the defendant's act and contributes to a harmful result but was not foreseeable by the defendant, potentially relieving them of liability.