Which of the Following Is NOT a Characteristic of a Perfectly

question 212

Multiple Choice

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

• A) There are large numbers of buyers and sellers.
• B) The firms in the industry produce a homogeneous product.
• C) Sellers have better information about the product than consumers.
• D) Any firm can enter or leave the industry without serious impediments.

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Definitions:

Opportunity Cost

The expense incurred by not choosing the second-best option when making a decision.

Scarcity

The basic economic issue arises from endless human desires and needs in a context of scarce resources.

Full Production

The level of production where a company or economy is maximizing its use of resources and operating at its highest efficiency.

Full Employment

Refers to the condition in the labor market where virtually all who are willing and able to work at prevailing wage rates are employed.