Question

Which of the following statement does NOT describe a situation of perfect competition.?

Accepted Answer

The firm makes no pure profit in the short run

Answer

The firm faces an infinitely elastic demand curve

Answer

The price does not change with changes in the output level of the firm

Answer

There is freedom of entry into, and exit out of the industry

Answer

The firm can sell all it produces at the market price

Which of the following statement does NOT describe a situation of perfect competition.?