If firms in a competitive market are not? identical, then an increase in cost for all firms will
A. shift marginal cost to the right.
B. push the most efficient firms out of the market.
C. push the most inefficient firms out of the market.
D. Need more information.
Answer: C. Push the most inefficient firms out of the market.
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In a perfectly competitive labor market, no individual firm's employment decision can affect the market wage because
a. union agreements prevent any firm from altering the wage rate b. each firm is ignorant of the market wage rate c. the demand for labor is a derived demand d. each firm hires a very small portion of the labor services available e. the wage rate is regulated by the government
Kara is a construction worker. Because of adverse weather during the winter, she has been laid off from her job. She is available for work and has even sought work with other construction companies. Kara is
a. experiencing frictional unemployment b. experiencing seasonal unemployment c. experiencing structural unemployment d. experiencing cyclical unemployment e. not in the labor force at this time
Which of the following correctly lists the products in order from most advertised to least advertised?
a. soft drinks, breakfast cereals, dog food b. corn, dog food, communication satellites c. dog food, communication satellites, corn d. wheat, corn, crude oil
In a market where the seller has more information than the buyer,
A. the seller can never gain by increasing the buyer’s information. B. both the buyer and seller can gain by increasing the buyer’s information. C. the buyer can never gain from increasing the seller’s information. D. the buyer can only gain from additional information if it is costless.