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

Which of the following statement 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
Correct Answer: Option B
Explanation
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