Which of the following is a defining characteristic of all perfectly competitive markets? Group of answer choices Each firm in the market faces a perfectly inelastic demand curve. All firms sell the same standardized product. Consumers display strong brand loyalty. The market demand curve is perfectly elast

Which of the following is a defining characteristic of all perfectly competitive markets? Group of answer choices Each firm in the market faces a perfectly inelastic demand curve. All firms sell the same standardized product. Consumers display strong brand loyalty. The market demand curve is perfectly elast

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter9: Market Structure And Long-run Equilibrium

Section: Chapter Questions

Problem 10MC

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Which of the following is not true for a competitive market? Group of answer choices Firms can earn positive economic profits in the long run Firms sell nearly identical products There are many buyers and sellers Firms expect zero economic long-run profits
All markets that are not perfectly competitive have which of the following characteristics? Each firm's marginal revenue is always equal to the market price. The product that each firm sells has no close substitutes. Firms in the market have some control over price, that is, each firm faces a downward sloping demand curve. Firms will produce a level of output where marginal cost equals the minimum level of average cost.
If you were to put the following effects of a decrease in demand into the sequence in which they occur, which would be the last one? Group of answer choices Market output falls. The demand curve facing each individual firm shifts downward. A short-run loss forces some firms out of business in the long run. In the short run, the market price drops. Each firm reduces quantity supplied to the point where marginal cost equals its decreased marginal revenue.
Which of the following is true about competitive firms? A firm with fixed/sunk costs receiving a price above its average variable cost will choose to stay in the industry in the short-run despite earning losses. Produce identical goods. An individual firm is too small relative to the market to impact the price. Is willing to supply a greater quantity if there is a reduction in the firm's marginal cost. Earn zero profits in the long-run because firms are free to enter or exit the industry over the long-run. They produce up until the point where the price equals the marginal cost of production.
Which of the following is a characteristic of a perfectly competitive market? Multiple Choice All firms produce and sell a standardized or undifferentiated product. It is difficult for new firms to enter the market due to barriers to entry. The firms are price-setters. The output sold by a particular firm may be quite different from the output sold by the other firms in the market. X
Which of the following characteristics does NOT describe a perfectly competitive market? Group of answer choices Firms set different prices for their product, either at or above the equilibrium price. Many firms are producing identical products Companies are able to enter and exit the market without any restrictions. There are many people who desire and have the ability to purchase the product.
Which of the following is a reason why firms in a perfectly competitive market have no influence over price? Barriers exist to enter the market. All firms in the market sell identical products. There are many sellers that produce similar, but not identical, products. Buyers and sellers lack perfect information about the product and pricing.
Do you agree with the following statement? Give reasons with a complete explanation for your answer. Production possibilities frontiers can shift upwards without an increase in resources. The demand for a commodity increase when the price of its substitute increases. The income elasticity of the demand for luxury goods is always positive. Under perfect competition, a firm fix its price where its AR=MR
Which of the following is not a characteristic of a perfectly competitive market. One firm's product is a perfect substitute for every other firm's product. There are no barriers to entry. Sellers are price makers. It has many buyers.
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Which of the following firms would most likely be part of a competitive market? Group of answer choices Tony’s brick oven pizza sells pizza by the slice in Georgetown. Abbot, a pharmaceutical company, is a major developer of insulin monitors. Marcus sells eggs that he collects from his hens to Safeway grocery. Central Gas & Electric, the single supplier or electricity.
QUESTION 6 Which of the following is a necessary condition for a firm to be able to bundle a new product with an existing one? consumers' willingness to pay for the two products are inversely related. the firm must operate in a perfectly competitive market. consumers must have a higher willingness to pay for the new product than for the older existing product. the two goods must be substitute products.