Which one does NOT belong?

Exercise and reference answers

Questions

1. Items

   1. A single supplier
   2. Many buyers
   3. Many sellers
   4. Free entry

   Reason

   A single supplier describes a monopoly, which is the opposite of perfect competition.

   Odd item

   A single supplier

2. Items

   1. Price taker
   2. Firm sets its own price
   3. Firm accepts the price
   4. Market sets the price

   Reason

   A perfectly competitive firm cannot set its own price; it takes the market price as given.

   Odd item

   Firm sets its own price

Instructions

Tap the item that does not belong with the rest.

Explanation