Which of the following is not one of the assumptions of a perfectly competitive market?

A) Better information for producers than consumers.
B) Homogeneous product.
C) Free entry and exit.
D) Large number of buyers and sellers.


Answer: A) Better information for producers than consumers.

Economics

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The table above gives the labor market for a small foreign economy. Equilibrium in the labor market occurs at a real wage rate of

A) $7.15 per hour. B) $8.50 per hour. C) $9.00 per hour. D) $7.65 per hour. E) $8.00 per hour.

Economics

Which of the following statements is true of equilibrium?

A) Economic agents have an incentive to divert from equilibrium. B) Each economic agent can reach equilibrium irrespective of the actions of others. C) In equilibrium, the opportunity cost of the choices made by each economic agent is zero. D) In equilibrium, all economic agents are choosing the best feasible option simultaneously.

Economics

The figure above shows the demand curve for pizza. Using the midpoint method and moving from point A to point B, calculate the

a) percentage change in price. b) percentage change in quantity demanded. c) price elasticity of demand.

Economics

Suppose that X and Y are complementary goods. If the price of good X decreases, we can expect the:

a. demand for good X to increase. b. quantity demanded of good Y to decrease. c. quantity demanded of good Y to increase. d. demand for good Y to decrease. e. demand for good Y to increase.

Economics