What are the characteristics of a perfectly competitive ...

[tiara099]

What are the characteristics of a perfectly competitive industry?

Question 2

According to the Heckscher-Ohlin model:
 a. a relatively labor scarce country produces labor intensive goods.
  b. the labor productivity varies across different countries.
  c. the technological advancement varies across countries.
  d. the taste and preference patterns of the consumers are not similar across the countries.
  e. a capital abundant country exports sophisticated, manufactured products.

[joshbk44]

Answer to Question 1

In a perfectly competitive industry there are many buyers and sellers and there are relatively low barriers to entry and exit from the industry. Firms are price takers since they are such a small portion of the total market and produce homogeneous products.

Answer to Question 2

e

[tiara099]

Correct answers!

[joshbk44]

Great! Please up vote