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The Model of Perfect Competition Is Most Likely to Apply

Question 32

Multiple Choice

The model of perfect competition is most likely to apply to a market where


A) it is difficult for existing firms to exit the market
B) there are a few buyers,and they are uninformed about the degree of product standardization
C) there are many existing sellers,but it is difficult for new sellers to enter the market
D) one dominant seller must negotiate with one dominant buyer
E) there are many sellers,and they produce a standardized product

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