Which of the Following Is True of a Perfectly Competitive

question 104

Multiple Choice

Which of the following is true of a perfectly competitive market?

• A)Firms experience constant returns to scale.
• B)Firms face significant barriers to entry.
• C)Firms experience decreasing returns to scale.
• D)Each firm chooses the price at which it wants to sell its product.
• E)Each seller supplies only a small fraction of the total amount in a market.

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Definitions:

Antagonist

In pharmacology, a substance that acts against and blocks an action within the body, or in literature, a character who opposes the protagonist.

Hallucinations

Perception-like experiences without an external stimulus, evident in conditions like schizophrenia, characterized by seeing, hearing, or feeling things that aren't present.

GABA

Gamma-Aminobutyric Acid, an inhibitory neurotransmitter in the brain that reduces neuronal excitability.

Agonist

A chemical or drug that binds to receptors in the brain and activates them, thereby producing a biological response.