What is the correct answer?


Perfect competition assumes:

A. All buyers and sellers have perfect knowledge of the market

B. Freedom of entry of firms into the industry

C. Homogeneous product

D. All of the above

Correct Answer :

D. All of the above

Related Questions

Technological Progress (Invention) can be defined as: The equilibrium of a firm is determined by the equality of MC and MR in… Economics is a: A good tends to have relatively inelastic demand, if: The Prisoners Dilemma was presented by A.W.Tucker in: For the equilibrium of the firm and the industry in the short period in… In dominant price leadership model, the dominant firm set the: The firm producing at the minimum point of the AC curve is said to be: Demand is elastic when the coefficient of elasticity is: The game theory is concerned with: In cournot model, at equuilibrium when MC = MR, the elasticity of demand… Opportunity costs are also known as: The marginal revenues are derivatives of: According to Marshallian approach, utility: Which of the following models are associated with non-collusive oligopoly? Consumer surplus is the difference between Marshallian approach is also known as: If at the unchanged price, the demand for a commodity goes up, or the… A maximin strategy: Price discrimination is undertaken with the aim of: A vertical supply curve parallel to the price axis implies that the elasticity… At a point below the middle of a straight line demand curve, elasticity… An indifference curve normally slopes downward from: With the change in the factor prices, the slope of the expansion path… If a ten percent increase in price causes a ten percent reduction in quantity… In dominant strategies I am doing the best, I can no matter: An effective price ceiling usually results in: When elasticity of demand is one (e=1), then following the formula MR=P[1-1/e],… Which is not a central problem of an economy? The point on which the average cost is minimum in a firm, short run average…