Which of the Following Is Unique to Perfect Competition

question 173

Multiple Choice

Which of the following is unique to perfect competition?

• A)The individual firm cannot earn economic profit in the long run.
• B)It is easy for new firms to enter the industry.
• C)The market demand curve slopes downward.
• D)The demand curve facing an individual firm is perfectly elastic.
• E)The firms in the industry produce a homogeneous product.

---

Definitions:

Wages

Payments made to employees for their labor or services, typically calculated on an hourly, daily, or weekly basis.

Interpersonal Trust Scale

A psychometric tool used to measure the degree of trust one individual has in other individuals within personal or professional contexts.

Readily Trusts

The tendency to easily place confidence in or rely on people or things.

Negative Behaviors

Actions or conduct that are destructive, harmful, or undesired, often impacting the individual and their surroundings negatively.