Asked by Tajmia Muhammad on Jun 12, 2024
Verified
When economists say that perfect competition has "many" firms,
A) they mean more than 20 firms.
B) they mean more than 50 firms.
C) they mean more than 100 firms.
D) they mean more than 200 firms.
E) they mean that there is no specific definition of "many," and that any number picked is arbitrary.
Many Firms
A situation in a market where numerous firms compete against each other to sell their products or services.
Perfect Competition
A market structure characterized by a large number of buyers and sellers, homogeneous products, and easy entry and exit, leading to price-taking behavior.
- Master the fundamentals of perfect competition and its inherent qualities.
Verified Answer
EM
Ekran MohamedJun 14, 2024
Final Answer :
E
Explanation :
There is no specific definition of how many firms constitute as "many" in the context of perfect competition. The number of firms can vary depending on the industry and market conditions. Therefore, any specific number picked would be arbitrary.
Learning Objectives
- Master the fundamentals of perfect competition and its inherent qualities.