People in the eastern part of Beirut are prevented by border guards from traveling to the western part of Beirut to shop for or sell food.This situation violates the perfect competition assumption of:

Question

Quizplus · Accepted Answer

The perfect competition assumption of ease of entry and exit is violated in this situation, as people are prevented from traveling between the two parts of Beirut for economic purposes. This creates barriers to new firms entering the market and limits competition, leading to potential inefficiencies and higher prices.

People in the Eastern Part of Beirut Are Prevented by Border