For perfect competition to work there must be ?
Correct answer: E. all of the above
- A. many buyers and sellers
- B. a standard product
- C. free entry and exit
- D. perfect information
- E. all of the above
Explanation
Perfect competition assumes many buyers and sellers, a standardized product, free entry and exit, and perfect information. Since all four conditions are listed, “all of the above” applies.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
A competitive firm demand curve is ?
A competitive firm produces a level of output at which ?
In perfect competition ?
In a competitive industry each buyer and seller ?
Holding all factors constant except one and increasing a variable factor is expected to lead to steadily decreased marginal product of that factor, this is an example of ?
The firms long run output decision will be where ?