Both buyers and sellers are price takers in a perfectly competitive market becau

Question

Both buyers and sellers are price takers in a perfectly competitive market because the price is determined by government intervention and dictated to buyers anti sellers each buyer and teller knows it it illegal to conspire to affect price. both buyers and tellers in a perfectly competitive market are concerned for the welfare of others each buyer and teller it too small relative to others to independently affect the marker price. Which of the following it the best example of a perfectly competitive firm? a com farmer in Illinois a Taco Bell restaurant the Ford Motor Company the United Parcel Service (UPS) Jason, a high-school student, mows, lawns for families in his neighborhood. The going rate is $12 for each lawn-mowing service. Jason would like to charge $20 because he believes he has more experience mowing lawns than the many other teenagers who also offer the same service. If the market for lawn mowing services is perfectly competitive, what would happen if Jason raised his price? He would lose some but not all ho customers Initially, his customers might complain but over time they will come to accept the new rate If Jason raises his price, he would lose all his customers. If Jason raises his price, then all others supplying the same service will also raise their pricess. Marginal revenue is total revenue divided by the total quantity of output. the change in profit divided by the change in the quantity of output. the change in total revenue divided by the change in total cost. the change in total revenue divided by the change in the quantity of output. If Ewan is consuming his utility maximizing bundle and the price of one good falls, what happens to the marginal utility per dollar spent on this good (MU/P), and what should Ewan do? MU/P has increased, and Ewan should buy more of this good. MU/P has increased, and Ewan should buy less of this good. MU/P has decreased, and t wan should buy more of this good MU/P has decreased, and Ewan should buy less of this good. If Canada imports fishing poles from Mexico and Mexico imports bacon from Canada, which of the following would explain this patent of trade? Mexico has a lower opportunity cost of producing bacon than Mexico, and Mexico has a comparative advantage in producing fishing poles.

Explanation / Answer

1.

d. each buyer and seller is too small relative to others to independetly affect the market price

as there are several buyer and sellers in the market with small quantity

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