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Microeconomics

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Price Taking in Perfect Competition

MICRO-J3WAX5

Which of the following assumptions of perfect competition are most important for obtaining the conclusion that firms in perfect competition are price takers? Select two.

A

The assumption that the market is made up of many small firms.

B

The assumption that there is free entry into the market.

C

The assumption that goods in the market are homogenous.

D

The assumption that firms have identical technology.