Which of the Following Is Characteristic of a Perfectly Competitive

question 21

Multiple Choice

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

• A)A small number of firms.
• B)Exit of small firms when profits are high for large firms.
• C)Zero economic profit in the long run.
• D)Marginal revenue lower than price for each firm.

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Definitions:

Lease Agreement

A legal contract in which one party agrees to rent property owned by another party, often detailing the terms, duration, and costs associated with the rental.

Risk Management

Planning that is undertaken to reduce the risk of loss from known and unknown events. In the context of insurance, risk management involves transferring certain risks from the insured to the insurance company.

Loss

The state of being deprived of or of being without something that one has had or expected to have.

Risk of Loss

The legal responsibility for the damage, destruction, or loss of property, which can transfer from seller to buyer according to the terms of a contract.