Which of the Following Is an Assumption in the Model

question 41

Multiple Choice

Which of the following is an assumption in the model of perfect competition?

• A)The firms in a competitive industry produce a homogeneous product.
• B)The firms in a competitive industry actively compete with each other by advertising.
• C)There are no natural impediments to entry in a competitive industry,but there may be artificial impediments such as licensing.
• D)The firms in a competitive industry have a decreasing short-run marginal cost curve.

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Definitions:

Prior Exposure

The phenomenon by which previous experience or contact with a stimulus influences one's response or reaction to it in the future.

Familiar Test Items

Test items that are recognizable by individuals, often because they have encountered similar items before or the items are related to known concepts.

Sensory Memory

The shortest-term element of memory that allows individuals to retain impressions of sensory information after the original stimuli have ended.

Short-Term Memory

The capability to hold a minimal amount of information in a state that's ready and active for a short time frame.