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A. There are many sellers and many buyers, none of which is large in relation to total sales or purchases. 1. Which of the following is not an assumption of the theory of perfect competition? A. There are many sellers and many buyers, none of which is large in relation to total sales or purchases. B. Each firm produces and sells a differentiated product. C. Buyers and sellers have all relevant information with respect to prices, product quality, and sources of supply. D. There is easy entry and exit.