The market structure of perfect competition exists when
A) there are a small number of interdependent firms that constitute the entire market.
B) there is a single producer of a product.
C) there are many producers of differentiated products.
D) there are many producers of a homogeneous product.
Answer is C) there are many producers of differentiated products.
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Refer to Figure 7-1. At the market equilibrium
A) the marginal benefit is less than the marginal cost. B) the marginal benefit is greater than the marginal cost. C) the marginal benefit is equal to the marginal cost. D) the marginal benefit is zero.
Under the U.S. system of regulation, most regulars are selected from
A) politicians and their friends. B) the industry that is to be regulated. C) consumer advocacy groups. D) university professors who understand the nature of the industry and who understand the true interests of consumers.