Which Characteristic of Perfect Competition Ensures That Economic Profit Will

question 142

Multiple Choice

Which characteristic of perfect competition ensures that economic profit will be zero in the long run?

• A)each firm's output is small in relation to total market supply
• B)buyers and sellers are fully informed about the price and availability of all resources and products
• C)the product is homogeneous
• D)there is freedom of entry and exit in the market
• E)firms are price takers

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Definitions:

Social Psychological Knowledge

Understanding derived from the scientific study of how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Policy Decision Making

The process involved in creating rules or directives that guide the actions of an organization or system.

Types of Interventions

Various strategies and methods used to address and rectify problems across different contexts, such as psychological, educational, or social.

Constraints

Limitations or restrictions that affect the choices or actions of individuals or systems, ranging from physical barriers to social and psychological factors.