Explain the Truthfulness of the Following Statements

question 27

Multiple Choice

Explain the truthfulness of the following statements
I. A characteristic of a perfectly competitive market is that products are undifferentiated. That is, consumers perceive products to be identical.
II. Equal access to resources is a condition in which all firms, including prospective entrants, have access to the same technology and inputs.

• A) Both I and II are true
• B) Both I and II are false
• C) I is true; II is false.
• D) I is false; II is true.

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Definitions:

Marginal Cost Element

An increase in total cost that results from producing one additional unit of a good or service.

Entrepreneurs

Individuals who create, organize, and operate businesses, taking on financial risks in the hope of profit.

Start-ups

New and emerging companies, typically in the technology sector, that aim to address market needs through innovative products or services.

Top Executives

Individuals occupying the highest level of management in an organization, responsible for making overarching decisions and setting strategic goals.