In a perfectly competitive market structure any firm can enter or leave the industry without serious impediments. This implies
A. firms will move labor and capital in pursuit of profit-making opportunities to whatever business venture gives them the highest return on their investment.
B. consumers are able to find out about lower prices charged by other firms.
C. the products sold will be alike.
D. no one buyer or seller has any influence on price.
Answer: A
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Which of the following is most likely to be a variable cost in the short run?
a. A fee paid to obtain a license. b. The cost of owning machinery. c. The energy costs of running a factory. d. Rent payments for office space.
The median household income is
A) the income that separates households into two equal groups. B) the most common household income. C) the mean household income. D) the average household income.
Refer to Table 4-2. The table above lists the highest prices five consumers are willing to pay for a concert ticket. If the price of one ticket falls from $50 to $20
A) everyone will buy a ticket. B) consumer surplus decreases from $48 to $24. C) only three tickets will be sold. D) consumer surplus increases from $0 to $62.
When a country's ability to maintain its fixed exchange rate is doubted by investors:
A. it may fall under a speculative attack. B. the exchange rate is likely to spiral upward, out of control. C. the value of its currency tends to appreciate too quickly. D. All of these statements are true.