In a competitive market,
a. no single buyer or seller can influence the price of the product.
b. there are only a small number of sellers.
c. the goods offered by the different sellers are unique.
d. accounting profit is driven to zero as firms freely enter and exit the market.
a
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Refer to the table above. If the market for notebooks is perfectly competitive, the equilibrium price is:
A) $2. B) $3. C) $4. D) $5.
Another term to describe the normal rate of return on capital is the
A) fixed cost of capital. B) depreciation cost of capital. C) opportunity cost of capital. D) monopoly rent.
If the long-run market supply curve is perfectly elastic, an increase in demand will cause the final equilibrium to be at:
A. the original price but with a higher output. B. a higher price with a higher output. C. a higher price but with the same output. D. the original price but at a smaller output.
A public good will:
A. be efficiently provided by the free market as long as its total benefits exceed its total costs. B. be efficiently provided by the free market as long as its marginal benefits exceed its marginal costs. C. be provided in less than efficient quantities by the free market. D. be provided in efficient quantities by voluntary contributions.