Perfect Competition Is Characterized by All of the Following Except

question 190

Multiple Choice

Perfect competition is characterized by all of the following except

• A)heavy advertising by individual sellers.
• B)homogeneous products.
• C)sellers are price takers.
• D)a horizontal demand curve for individual sellers.

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Definitions:

Price-inelastic

Price-inelastic describes a situation where the demand for a product or service is relatively unresponsive to changes in its price.

Linear Demand Curve

A graphical representation showing a straight-line relationship between the quantity demanded of a good and its price.

Price Elasticity

A measure of the sensitivity of demand for a product in response to a change in its price.

Perfectly Elastic Demand

The case in which any price increase will cause the quantity demanded to drop to zero; the demand curve is a horizontal line.