Which of the Following Is Inconsistent with the Model of Perfect

question 42

Multiple Choice

Which of the following is inconsistent with the model of perfect competition?​

• A)Ease of entry into an industry
• B)Ease of exit from an industry​
• C)Many buyers and sellers in the industry​
• D)Advertising of product differences in the industry​
• E)A horizontal demand curve facing each firm in the industry​

---

Definitions:

Fixed Coefficients

A term used in production and economics to describe technologies where inputs are used in strict fixed proportions to produce an output.

Production Possibility Set

A graph or curve depicting all maximum output possibilities for two or more goods, given a set of inputs.

Marginal Rate of Substitution

The rate at which a consumer is willing to give up one good in exchange for another, while keeping the overall satisfaction or utility constant.

Pareto Optimal

The configuration of resource distribution where making one person more prosperous requires making another person less so.