Perfect competition requires that resources be:
A) the highest quality for consumers.
B) fixed over the short run but free over the long run.
C) completely mobile to freely enter or exit the market.
D) completely unmovable and enjoy the economies of scale.

Question

Quizplus · Accepted Answer

Perfect competition requires that resources be completely mobile to freely enter or exit the market. This allows for firms to enter or exit the market without any barriers, and for competition to operate freely. High quality resources or fixed resources are not necessarily required for perfect competition, and enjoying economies of scale would give a firm an advantage over competitors, potentially disrupting perfect competition.

Perfect Competition Requires That Resources Be