Which of the Following Is Not an Assumption of Perfectly

question 229

Multiple Choice

Which of the following is not an assumption of perfectly competitive markets?

• A)There are many sellers and many buyers, all of which are small relative to the market.
• B)Each firm produces a similar but not identical product.
• C)There are no barriers to new firms entering the market.
• D)The products sold by all firms in the market are identical.

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Definitions:

Sampling Distribution

The probability distribution of a given statistic based on a large number of samples drawn from a specific population.

Standard Deviation

A measure that quantifies the amount of variation or dispersion of a set of data values from the mean, indicating how spread out the data points are.

Standard Deviation

A determination of the magnitude of variation or dispersion among values in a set.

Sample Mean

The average of the values in a sample, serving as an estimate of the population mean and used to make inferences about the population.