Which of the Following Is a Unique Feature of Perfect

question 79

Multiple Choice

Which of the following is a unique feature of perfect competition?​

• A)The individual firm cannot earn economic profit in the long run.
• B)It is easy for new firms to enter the industry.
• C)The market demand curve slopes downward.
• D)The demand curve facing an individual firm is perfectly elastic.
• E)The firms in the industry produce a homogeneous product.

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Definitions:

Maximin Strategy

A decision rule which aims to maximize the minimum payoff attainable, often used under conditions of uncertainty.

Payoffs

The returns or benefits received from a particular action or investment.

Nash Equilibrium

A concept within game theory where each player's strategy is optimal, given the strategies of other players, and no player has anything to gain by changing their own strategy alone.

Dominant Strategy

A strategy in a game theory context that is best for a player regardless of what strategies other players choose.