CIPS Exam L4M6 Topic 3 Question 34 Discussion

Actual exam question for CIPS's L4M6 exam

Question #: 34
Topic #: 3

[All L4M6 Questions]

Which of the following statements are true of a market place which is considered a 'perfect competition'? Select TWO.

Athere are no barriers to entry

Bsuppliers are selling differentiated products

Ccompetition is at its highest level possible

Dcompetition is not strong

Show Suggested Answer

Suggested Answer: A

This is an example of poor-communication. The information was not passed from the person who signed the contract to the staff on site who were to do the cleaning. See p.158 on communication issues.

by Felix at Mar 07, 2024, 11:21 PM

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Billi

2 months ago

Perfect competition, where the 'competition is not strong'? Sounds more like a monopoly to me. A and C are the way to go.

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Aretha

4 days ago

Yeah, perfect competition is the opposite of a monopoly. A and C are definitely the right choices.

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Dorothea

9 days ago

I agree, in perfect competition, there are no barriers to entry and all products are identical. So A and C make sense.

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Sarina

16 days ago

I think A and C are correct. Perfect competition is all about many buyers and sellers with no single entity having control over the market.

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Kenneth

2 months ago

Haha, 'competition is not strong'? That's the complete opposite of perfect competition! I'm going with A and C for sure.

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Rolland

17 days ago

User 2: I agree, and I think C is true too because competition is at its highest level possible.

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Burma

24 days ago

User 1: I think A is true because there are no barriers to entry.

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Adolph

2 months ago

I agree with Hershel. B and D are clearly not true of a perfect competition market.

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Paulina

2 months ago

I'm not sure about C. I think it's A and D because in perfect competition, suppliers sell identical products.

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Hershel

2 months ago

A and C seem to be the correct answers here. No barriers to entry and competition at its highest level - that's the definition of perfect competition.

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