Which of the following is not an assumption of perfectly competitive markets?
A) There are many sellers and many buyers, all of which are small relative to the market.
B) Each firm produces a similar but not identical product.
C) There are no barriers to new firms entering the market.
D) The products sold by all firms in the market are identical.
Answer: B
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When you think about investments in capital goods, the one category that is most important and, at least in the long run, yields the highest returns is investment in
a. infrastructure b. raw material extraction c. factories d. education and health e. machinery
The money market model is concerned with ________ and the loanable funds market model is concerned with ________
A) short-term real interest rates; long-term nominal interest rates B) short-term nominal interest rates; long-term nominal interest rates C) short-term real interest rates; long-term real interest rates D) short-term nominal interest rates; long-term real interest rates