Question 1

Which of the following is not characteristic of a perfectly competitive market?

Accepted Answer

A)   Firms are price takers
B)   Brand loyalty
C)   Low barriers to entry
D)   Many firmsE) B) and D)
F) A) and B)

Question 2

In long-run competitive market equilibrium,price equals _______ and economic profit is _______.

Accepted Answer

A)   Minimum average variable cost;greater than zero
B)   Minimum average total cost;zero
C)   Maximum marginal cost;zero
D)   Minimum fixed cost;greater than zeroE) A) and D)
F) B) and C)

Question 3

Economists assume that the principal motivation of producers is:

Accepted Answer

A)   Profit.
B)   Competition in society.
C)   A sense of well-being.
D)   Individual desires.E) A) and D)
F) A) and B)

Question 4

Which of the following is characteristic of a perfectly competitive market?

Accepted Answer

A)   Firms are price setters
B)   A few firms dominate the market
C)   There are low barriers to entry
D)   The market demand curve is flatE) B) and D)
F) A) and B)

Question 5

Competition in markets results in:

Accepted Answer

A)   Economic losses in the long run.
B)   Guaranteed economic profit.
C)   The optimal mix of goods and services being produced.
D)   An undesirable allocation of resources.E) B) and C)
F) A) and B)

Question 6

An individual competitive firm:

Accepted Answer

A)   Has a large advertising budget.
B)   Produces a small portion of output relative to the market.
C)   Can alter the market price of the good(s) it produces.
D)   Can raise its price to increase profit.E) B) and C)
F) A) and D)

Exam 6: Competition

Competition in markets results in:

Correct Answer
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Which of the following is characteristic of a perfectly competitive market?

Correct Answer
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Economists assume that the principal motivation of producers is:

Correct Answer
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Which of the following is not characteristic of a perfectly competitive market?

Correct Answer
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An individual competitive firm:

Correct Answer
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In long-run competitive market equilibrium,price equals _ and economic profit is _.

Correct Answer
verified

Exam 6: Competition

Competition in markets results in:

Correct AnswerverifiedShow Answer

Which of the following is characteristic of a perfectly competitive market?

Correct AnswerverifiedShow Answer

Economists assume that the principal motivation of producers is:

Correct AnswerverifiedShow Answer

Which of the following is not characteristic of a perfectly competitive market?

Correct AnswerverifiedShow Answer

An individual competitive firm:

Correct AnswerverifiedShow Answer

In long-run competitive market equilibrium,price equals _______ and economic profit is _______.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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In long-run competitive market equilibrium,price equals _ and economic profit is _.

Correct Answer
verified