Ask Question
BusinessBusiness
24 April, 11:24

Which of the following is NOT a basic assumption of perfect competition? A. Production is characterized by significant economies of scale. B. There is free entry and exit from the market. C. All firms produce identical, or nearly identical, products. D. All firms and consumers are price takers.

+1
Answers (1)
  1. 24 April, 14:48
    0
    Answer: Production is characterized by significant economies of scale is not an assumption of perfect competition (A)

    Explanation:

    A perfect competition is a form of market structure that has many buyers and may sellers. In a perfect competition, there is a free entry and exit for producers as there is no barrier.

    Also, firms are price takers as no producer can influence the price of the goods in the market unlike in an imperfect competition which is a price maker as producers can influence price. Firms also sell identical products that are the same in quality, size etc.

    In a perfect competition, production is not characterized by significant economies of scale. That is an assumption that can be found in monopoly.

    Therefore, option A is the right answer.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Which of the following is NOT a basic assumption of perfect competition? A. Production is characterized by significant economies of scale. ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
What's the purpose of balancing or monitoring your checking account everfi
Answers (1)
A profit-maximizing firm will use more of a factor of production when: The extra cost of using an additional factor unit is less than the marginal revenue product of the additional factor unit.
Answers (1)
XYZ began operations in 2018. The company reported $128,000 of depreciation expense on its income statement in 2018 and $84,000 in 2019. On its tax returns, the company deducted $192,000 for depreciation in 2018 and $112,000 in 2019.
Answers (1)
Which of the following is an example of a caught-in or caught-between hazard? A. A construction worker was moving tar paper in a bucket to the top of a building. The bucket tilted and the rolls fell out of the bucket, hitting the worker in the head.
Answers (1)
Other things equal, an increase in the interest rate leads to: a. no change in the quantity of investment goods demanded. b. sometimes an increase and sometimes a decrease in the quantity of investment goods demanded. c.
Answers (1)
New Questions in Business
EB14. LO 6.5Crafts 4 All has these costs associated with production of 12,000 units of accessory products: direct materials, $19; direct labor, $30; variable manufacturing overhead, $15; total fixed manufacturing overhead, $450,000.
Answers (1)
Which factor of production include any form of human effort exerted in production? entrepreneurship labor capital land
Answers (1)
A perfectly competitive orchard that produces 500 lbs of apples in the short run has an ATC = $10 and AFC = $8. The market price is $4 per lb and is equal to MC. In order to maximize profits (or minimize losses) in the short-run, this farm should:
Answers (1)
Assuming that Novartis AG (NVS) has a book value of $5.55, based upon the average price - to - book ratio for its competitors, Novartis' stock price is closest to: $13.00 $39.70 $21.50 $44.35
Answers (1)
What would happen in the market for knee replacement surgery if insurance companies started to cover a smaller portion of the cost of the surgery?
Answers (2)
Home » Business » Which of the following is NOT a basic assumption of perfect competition? A. Production is characterized by significant economies of scale. B. There is free entry and exit from the market. C. All firms produce identical, or nearly identical, products.
Sign Up Forgot Password?