1.) Perfectly competitive firm is a price taker because: It has no control over
ID: 1153578 • Letter: 1
Question
1.) Perfectly competitive firm is a price taker because: It has no control over the selling price of its product. It has market power. Market deman is downward sloping. It’s products are differentiated.2.) for the perfectly competitive firm; Praise always equals average cost. Price always equals marginal cost. Price always equals average variable cost. Price always equals marginal revenue.
3.) which one of the following is not a characteristic of a perfectly competitive market structure? Very large number of firms. Standardized product. Barriers to entry. No control over price.
4.) in the long run, competitive firms___ economic profits? Zero Negative Significant Modest
5.) profits in competitive markets leads to___ the industry which leads to_____prices? Entry into: lower Entry into: higher Exit from: lower Exit from: higher
6.) In a perfectly competitive industry, if firms make positive economic profit in the short run, what should we expect to happen in the market in the long run? Demand will shift right Demand will shift left Supply will shift right Supply will shift left
1.) Perfectly competitive firm is a price taker because: It has no control over the selling price of its product. It has market power. Market deman is downward sloping. It’s products are differentiated.
2.) for the perfectly competitive firm; Praise always equals average cost. Price always equals marginal cost. Price always equals average variable cost. Price always equals marginal revenue.
3.) which one of the following is not a characteristic of a perfectly competitive market structure? Very large number of firms. Standardized product. Barriers to entry. No control over price.
4.) in the long run, competitive firms___ economic profits? Zero Negative Significant Modest
5.) profits in competitive markets leads to___ the industry which leads to_____prices? Entry into: lower Entry into: higher Exit from: lower Exit from: higher
6.) In a perfectly competitive industry, if firms make positive economic profit in the short run, what should we expect to happen in the market in the long run? Demand will shift right Demand will shift left Supply will shift right Supply will shift left
1.) Perfectly competitive firm is a price taker because: It has no control over the selling price of its product. It has market power. Market deman is downward sloping. It’s products are differentiated.
2.) for the perfectly competitive firm; Praise always equals average cost. Price always equals marginal cost. Price always equals average variable cost. Price always equals marginal revenue.
3.) which one of the following is not a characteristic of a perfectly competitive market structure? Very large number of firms. Standardized product. Barriers to entry. No control over price.
4.) in the long run, competitive firms___ economic profits? Zero Negative Significant Modest
5.) profits in competitive markets leads to___ the industry which leads to_____prices? Entry into: lower Entry into: higher Exit from: lower Exit from: higher
6.) In a perfectly competitive industry, if firms make positive economic profit in the short run, what should we expect to happen in the market in the long run? Demand will shift right Demand will shift left Supply will shift right Supply will shift left
Explanation / Answer
Q1. Answer is It has no controol over the selling price. Q2. Answer is Price always equal to marginal revenue Q3. Answer is Barriers to entry Q4. Answer is Zero. Q5. Answer is Entry in to; Lower The profits in market leaads to the new firm to enter the market which will increase the supply hence reduce the prices and profits. Q6. Answer is Supply will shift right.
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