Perfect Competition Requires That Resources Be

question 23

Multiple Choice

Perfect competition requires that resources be:

• A) the highest quality for consumers.
• B) fixed over the short run but free over the long run.
• C) completely mobile to freely enter or exit the market.
• D) completely unmovable and enjoy the economies of scale.

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Accounts Receivable

Money owed a company by its clients or customers who have promised to pay for the products at a later date.

Commercial Paper

A written promise from one company to another to pay a specific amount of money.