In the Theory of Perfect Competition

Multiple Choice

In the theory of perfect competition,

A) sellers of the product are not influenced by other sellers and therefore have virtually complete control over the production and pricing of their product.
B) buyers of the product may have a preference as to whom they purchase from based on brand loyalty.
C) buyers and sellers of the product know everything that there is to know about the product.
D) it can be quite expensive for a firm to enter this type of market, but once the firm is established, it will be a profitable venture.