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All of the following are true about perfect competition except that A. There is free market entry without large capital costs for entry. B. There are many firms participating in the market. C. In the long run, an increase in profit will have no effect on the number of firms in the market. D. Firms are price takers.
According to my knowledge, perfect competition is a situation in which a price initiative by one firm ignites the price war.
Option C seems irrelevant.
Option A suggests open opportunity for everyone
Option B suggests there are competitors.
Option D suggests they are working on price and it's reduction so are price takers.
C. In the long run, an increase in profit will have no effect on the number of firms in the market.
C
option (c)
Option (C.).
A. There is free market entry without large capital costs for entry.
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