One assumption of the model of perfect competition is that entry into the market is easy. This implies that:
a. there are government licensing requirements for a firm to enter the market.
b. there are no significant economies of scale relative to the size of the market.
c. one firm has gained a patent in the industry.
d. significant economies of scale do exist in the industry.
e. there is no government intervention.
b
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Rational choice
A) is a choice that uses the available resources to best achieve the objective of the person making the choice. B) is always efficient. C) is what you must give up to get what you want. D) is made by comparing different incentives. E) provides the answer to only the "how" question.
GDP will tend to overstate the productive capacity of a country when
a. economic bads like pollution are produced and then must be cleaned up. b. there is a sizable underground economy. c. nonmarket production represents a large portion of the economy. d. working conditions improve, allowing jobs to be completed safer and faster.