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:

Business for Profit

A business for profit is an organization engaged in commercial, industrial, or professional activities with the primary goal of earning financial gain.

Insect Farm

A facility dedicated to breeding and raising insects for various purposes, including animal feed, human consumption, or agricultural benefits.

Medicinal Uses

Pertains to the application or use of substances in the treatment, prevention, or diagnosis of disease or other medical conditions.

Undivided Interest

Refers to a co-owner's share in a property, where each owner has rights to the entire property rather than a specific subdivided portion.