Assume the Wool Industry Is Perfectly Competitive

question 59

Multiple Choice

Assume the wool industry is perfectly competitive. Why is it difficult for a wool producer to make excess profits in the long run?

• A) the fact that wool producers are ʺprice takersʺ
• B) the assumption that wool producers in the industry do not ʺdifferentiateʺ their products
• C) the fact that the demand curve facing each wool producer is perfectly elastic
• D) There is free entry into the wool industry.

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Definitions:

Shift Register

A digital memory circuit used to store and shift bits, often used in serial communication and for temporary data storage.

Sequencer Process

A control process that operates in a step-by-step manner, precisely controlling the sequence of operations or tasks, commonly used in automated systems.

Mask Outputs

The process of selectively activating or deactivating outputs in a digital system based on a masking pattern.

Last Word

The final data element in a string or data block, often used to signify the end of a message or the boundary of a data structure.