The "perfect information" assumption of perfect competition includes all of the following except one. Which one?
A) Consumers know their preferences.
B) Consumers know their income levels.
C) Consumers know the prices available.
D) Consumers can anticipate price changes.
E) Firms know their costs, prices and technology.

Question

Quizplus · Accepted Answer

The "perfect information" assumption in perfect competition typically means that all participants have complete information about prices, products, and their own preferences, but it does not necessarily include the ability to anticipate future price changes.

The "Perfect Information" Assumption of Perfect Competition Includes All of the Following