Which of the Following Is NOT a Characteristic of a Perfectly

question 218

Multiple Choice

Which of the following is NOT a characteristic of a perfectly competitive industry?

• A) There is free entry and exit in the long run.
• B) The industry demand curve is downward sloping.
• C) Each firm produces the same homogeneous product.
• D) Economic profits must be positive in the short run.

---

Definitions:

Field Experiment

An experiment that is conducted in a natural setting rather than in a laboratory setting.

Shopping Preferences

Individual choices or inclinations towards certain products, brands, or shopping environments.

External Validity

The ability to apply the outcomes of a research project to different environments and other persons.

Generalization

The process of applying the results from studies to wider contexts outside of the original research settings.