Does a real-world market have to meet all the assumptions of the theory of perfect competition before it is considered a perfectly competitive market?
A) No, probably no real-world market meets all the assumptions of the theory of perfect competition.All that is necessary is that a real-world market behave as if it satisfies all the assumptions.
B) Yes, if a real-world market does not meet the assumptions, then it cannot be considered a perfectly competitive market.
C) Yes, unless it is a new market such as the computer market.New markets are not held to the same assumptions as old, more established markets.
D) No, but it does have to meet the assumption of producing and selling a homogeneous product.It does not have to fully meet the other assumptions.
Correct Answer:
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Q25: The price at which a perfectly competitive
Q26: The theory of perfect competition generally assumes
Q27: Exhibit 22-1 Q28: Which of the following statements is false? Q29: In the theory of perfect competition, Q31: Marginal revenue is Q33: Exhibit 22-1 Q33: Exhibit 22-1 Q34: In the theory of perfect competition, Q35: Exhibit 22-1 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents
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