Question

Which of the following statements is false?

A) The perfectly competitive firm's demand curve is horizontal at the market price.
B) The theory of perfect competition is completely and accurately descriptive of most real-world firms.
C) If firm X does not strictly meet all the assumptions of the theory of perfect competition, but behaves as if it does, then the theory of perfect competition is relevant to it.
D) In perfect competition, the market price is established at the intersection of the market demand and market supply curves

Answer 1

Option B

The theory of perfect competition is completely and accurately descriptive of most real world firms.

Step-by-step explanation:

Option B

The theory of perfect competition is completely and accurately descriptive of most real world firms.

In theory of perfect competition all the firms have homogenous product which they are selling and their Market share has no effect on prices.