Which of the Following Is True About Perfect Competition

question 4

Multiple Choice

Which of the following is true about perfect competition?

• A)Since a perfectly competitive seller can sell all he wants at the market price, her demand curve is horizontal at the market price over the entire range of output that she could possibly produce.
• B)Because perfectly competitive markets have many buyers and sellers, each firm is so small in relation to the industry that its production decisions have no impact on the market.
• C)Because consumers believe that all firms in a perfectly competitive market sell identical (homogeneous) products, the products of all the firms are perfect substitutes.
• D)Perfectly competitive markets have easy entry and exit.
• E)All of the above are true about perfect competition.

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Definitions:

Unconditioned Response

A spontaneous, innate response to a stimulus that happens without any previous learning or conditioning.

Unconditional Reinforcement

Unconditional reinforcement refers to a method of reinforcing desired behavior by consistently providing a positive outcome, without any conditions.

Unconditional Retention

Unconditional retention often refers to the total retention or memorization of information without conditions or contingencies.

Unconditioned Stimulus

In classical conditioning, an unconditioned stimulus is something that naturally and automatically triggers a response without any learning needed, such as food causing salivation in dogs.