Author Question: According to your authors, the following is a necessary condition for a competitive market: A) ... (Read 53 times)

jazziefee · **on:** Jun 29, 2018

According to your authors, the following is a necessary condition for a competitive market:

A) Large numbers of buyers and sellers
B) Full and complete information
C) Freedom of entry
D) Identical products
E) All of the above.

Question 2

Positive economic profits in a perfectly competitive market imply that:

A) producers are earning more than their opportunity cost.
B) existing firms are likely to leave the market.
C) the cost of production is equalized across producers.
D) government intervention is required to stabilize the market.