Suppose That the Market in Which Bakeries Compete Is a Perfectly

Question 97
Multiple Choice

Suppose that the market in which bakeries compete is a perfectly competitive market.Which one of the following reasons does not explain why it is difficult for a bakery to make an economic profit in the long run? A)All bakeries are price takers. B)All bakeries are able to set the market price. C)The threat of entry by potential bakeries. D)The demand facing each bakery is perfectly elastic. E)All bakeries produce identical goods.