The fundamental condition of perfect competition is that there must be a large number of sellers or firms. Homogeneous Commodity is the second fundamental condition of a perfect market. The products of all firms in the industry are homogeneous and identical. In other words, they are perfect substitutes for one another.

Correct Option: D

The fundamental condition of perfect competition is that there must be a large number of sellers or firms. Homogeneous Commodity is the second fundamental condition of a perfect market. The products of all firms in the industry are homogeneous and identical. In other words, they are perfect substitutes for one another.

Division of Labor is the “specialization” of cooperative labor in specific, circumscribed tasks and like roles. It is a process whereby the production process is broken down into a sequence of stages and workers are assigned to particular stages.

Correct Option: D

Division of Labor is the “specialization” of cooperative labor in specific, circumscribed tasks and like roles. It is a process whereby the production process is broken down into a sequence of stages and workers are assigned to particular stages.

There are six characteristics of monopolistic competition (MC): (a) Product differentiation; (b) many firms; (c) Free entry and exit in the long run; (d) Independent decision making; (e) market power; and (f) Buyers and Sellers do not have perfect information.

Correct Option: B

There are six characteristics of monopolistic competition (MC): (a) Product differentiation; (b) many firms; (c) Free entry and exit in the long run; (d) Independent decision making; (e) market power; and (f) Buyers and Sellers do not have perfect information.

In economics, fixed costs are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be timerelated, such as salaries or rents being paid per month, and are often referred to as overhead costs. For some employees, salary is paid on monthly rates, independent of how many hours the employees work. This is a fixed cost. On the other hand, the hours of hourly employees paid in wages, can often be varied, so this type of labour cost is a variable cost.

Correct Option: C

In economics, fixed costs are business expenses that are not dependent on the level of goods or services produced by the business. They tend to be timerelated, such as salaries or rents being paid per month, and are often referred to as overhead costs. For some employees, salary is paid on monthly rates, independent of how many hours the employees work. This is a fixed cost. On the other hand, the hours of hourly employees paid in wages, can often be varied, so this type of labour cost is a variable cost.

If quantity demanded changes by a very large percentage as a result of a tiny percentage change in price, then the demand is said to be perfectly elastic. It reflects the fact that quantity demanded is extremely responsive to even a small change in price. Technically, the elasticity in this extreme case would be undefined but it approaches negative infinity as demand becomes more elastic.

Correct Option: C

If quantity demanded changes by a very large percentage as a result of a tiny percentage change in price, then the demand is said to be perfectly elastic. It reflects the fact that quantity demanded is extremely responsive to even a small change in price. Technically, the elasticity in this extreme case would be undefined but it approaches negative infinity as demand becomes more elastic.