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

  • A The firm faces an infinitely elastic demand curve
  • B The firm makes no pure profit in the short run
  • C The price does not change with changes in the output level of the firm
  • D There is freedom of entry into and exit out of , the industry
  • E The firm can sell all it produces at the market price

The correct answer is B. The firm makes no pure profit in the short run

No explanation given
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