Answer the following statement(s) true (T) or false (F)
1. In a perfectly competitive market, there are few buyers and sellers.
2. In a perfectly competitive market, consumers believe all firms sell homogeneous products.
3. There are often large barriers to the entry, but not the exit, of firms in a perfectly competitive market.
4. In a perfectly competitive market, consumers, for the most part, are price takers.
5. A firm’s demand curve slants upward because market demand increases when the supplier lowers her prices in a perfectly competitive market.
1. FALSE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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In the typical CPI shopping basket, which of the categories below represents the largest percentage of consumer spending?
a. housing b. food & beverages c. transportation d. medical care
The difference between zero accounting profit and zero economic profit is that
a. economists include opportunity cost in zero economic profit, while accountants do not include opportunity cost in zero accounting profit. b. economists do not include opportunity cost in zero economic profit, while accountants do include opportunity cost in zero accounting profit. c. economists include opportunity cost in zero accounting profit, while accountants do not include opportunity cost in zero economic profit. d. economists do not include opportunity cost in zero accounting profit, while accountants do include opportunity cost in zero economic profit.
When wage rates rise the short-run aggregate supply curve shifts to the right
Indicate whether the statement is true or false
The demand curve for a foreign currency in the foreign exchange market is ______.
a. downward sloping b. perfectly horizontal c. upward sloping d. perfectly vertical