Choose the statement about perfect competition that iscorrectA. There can be a small number of firms but each firm produces a variety of products. B. One firm sells a product that is slightly different from the product of a competing firm. C. There are no close substitutes for the goods produced by each firm. D. There is no restriction on the entry of new firms into the industry.

Question

Ronnie Ortiz

Social Studies

8 July, 20:56

Choose the statement about perfect competition that iscorrectA. There can be a small number of firms but each firm produces a variety of products. B. One firm sells a product that is slightly different from the product of a competing firm. C. There are no close substitutes for the goods produced by each firm. D. There is no restriction on the entry of new firms into the industry.

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Graham Carpenter · Answer 1

D. There is no restriction on the entry of new firms into the industry.

Explanation:

The statement about perfect competition that is correct is there is no restriction on the entry of new firms into the industry. Perfect competition describes a theoretical structure of the market in which competition reaches its highest level. Option A is incorrect because there is no limit to the number of firms. Moreover, each firm produces the same product.