One Assumption of the Model of Perfect Competition Is That

question 134

Multiple Choice

One assumption of the model of perfect competition is that entry into the market is easy.This implies that:

• A)there are government licensing requirements for a firm to enter the market.
• B)there are not significant economies of scale relative to the size of the market.
• C)one firm has gained a patent in the industry.
• D)significant economies of scale do exist in the industry.
• E)there is no government intervention.

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Definitions:

Hypokalemia

A medical condition characterized by lower-than-normal levels of potassium in the bloodstream, which can affect heart and muscular function.

Laxatives

Substances that promote bowel movements and are used to treat or prevent constipation, often by softening stools or increasing their passage through the bowels.

Refeeding

The process of gradually reintroducing food after a period of malnutrition or starvation, aiming to prevent refeeding syndrome.