Asked by Junwei Zheng on Apr 26, 2024
Verified
Which statement is false?
A) The perfect competitor is a small firm producing an identical product.
B) A perfectly competitive industry has great mobility of resources.
C) There are many examples of perfectly competitive industries in the United States.
D) The perfectly competitive firm makes zero economic profits in the long run.
Perfect Competitor
A theoretical market structure in which many firms sell an identical product, and no single buyer or seller can influence the market price.
Perfectly Competitive Industry
A market structure where many firms sell identical products, entry and exit are easy, and no single buyer or seller can affect the market price.
Economic Profits
Profits exceeding the next best alternative use of resources, considered abnormally high in economic terms.
- Comprehend the idea of perfect competition along with its defining features.
- Recognize the standards of efficiency, specifically productive and allocative, for companies operating within a perfectly competitive market.
Verified Answer
Learning Objectives
- Comprehend the idea of perfect competition along with its defining features.
- Recognize the standards of efficiency, specifically productive and allocative, for companies operating within a perfectly competitive market.
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