When Economists Say That Perfect Competition Has "Many" Firms

question 147

Multiple Choice

When economists say that perfect competition has "many" firms,

• A)they mean more than 20 firms.
• B)they mean more than 50 firms.
• C)they mean more than 100 firms.
• D)they mean more than 200 firms.
• E)they mean that there is no specific definition of "many," and that any number picked is arbitrary.

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Definitions:

Accrued Interest

The interest on a loan or bond that has accumulated since the principal investment, or since the last interest payment, if there has been one already.

Using Sinking Fund

The practice of setting aside money over time into a separate account to repay debt or replace a major asset in the future, thus avoiding a large lump-sum expense.

Market Value

Market value is the amount for which something can be sold in a given market at a particular time.

Redemption Value

The price per share a corporation pays to redeem or retire capital stock.