In the Theory of Perfect Competition, the Assumptions of Many

Multiple Choice

In the theory of perfect competition, the assumptions of many buyers and sellers, the production of a homogeneous product, and the possession of all relevant information by buyers and sellers imply that the perfectly competitive firm

A) sets the price it wishes.
B) has a demand curve that is downward sloping.
C) has a demand curve that is perfectly elastic.
D) a and b
E) a and c