All firms in a perfect competition industry
A) are price makers.
B) produce differentiated products.
C) produce identical products.
D) lose money.
Answer: C
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Which of the following statements about a monopoly is FALSE?
A) Monopolies have no barriers to entry or exit. B) The good produced by a monopoly has no close substitutes. C) A monopoly is the only producer of the good. D) None of the above; that is, all of the above answers are true statements about a monopoly.
[Appendix; Advanced Material] If an airline company decides to buy smaller jets with fewer seats, then the problem of:
a. spillage and spoilage both increase. b. spillage decreases, but spoilage increases. c. spillage and spoilage both decrease. d. spoilage decreases, but spillage increases.
In a constant cost industry, the cost curves of individual firms will shift upward as the industry output expands
a. True b. False Indicate whether the statement is true or false
Real GDP is calculated because
a. it is a much better measure of economic behavior than nominal GDP b. the value of the dollar is increasing c. it allows us to make comparisons between countries d. nominal GDP has no theoretical foundation e. nominal GDP is corrected for inflation