Which of the following is an assumption in the model of perfect competition?
A) The firms in a competitive industry produce a homogeneous product.
B) The firms in a competitive industry actively compete with each other by advertising.
C) There are no natural impediments to entry in a competitive industry,but there may be artificial impediments such as licensing.
D) The firms in a competitive industry have a decreasing short-run marginal cost curve.
Correct Answer:
Verified
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Q5: If firms in a perfectly competitive market
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A)unit elastic
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A)coincides
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