Which of the following is not an assumption economists make when using the model of perfect competition?
A) Firms seek to maximize profits.
B) The products of each firm in a particular market are identical.
C) Each firm sets it price equal to its average total cost.
D) There is easy entry and exit.
Correct Answer:
Verified
Q2: The competitive model assumes all of the
Q3: In the model of perfect competition:
A) the
Q5: Individuals in a market who must take
Q7: A perfectly competitive firm is a:
A)price taker.
B)price
Q7: Price takers:
A) are those individuals in a
Q8: An assumption of the model of perfect
Q9: Suppose that the market for computers is
Q10: The assumptions of perfect competition imply that:
A)
Q11: In a perfectly competitive market:
A) there are
Q19: Perfect competition is characterized by:
A)rivalry in advertising.
B)fierce
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