An imperfectly competitive firm is one that:
A. seeks to maximize revenue.
B. has at least some influence over the market price.
C. charges any price it wants.
D. faces a perfectly inelastic demand curve.
Answer: B
You might also like to view...
Which of the following is not a component of the aggregate expenditures of a country?
a. Investment b. Government spending c. Net exports d. Consumption e. Transfer payments
Given that tariffs and quotas cost consumers and that they are a grossly inefficient means for creating or preserving jobs , citizens nevertheless allow these policies to exist because
A. the costs of tariffs and quotas are diffused throughout an entire nation, while the benefits are concentrated. B. they know that petitioning the government to do the right thing is futile. C. incentives to organize around the issue of trade policy are asymmetric. D. all of the above. E. A and C only.
Exhibit 4-11 Data on supply and demand Bushels demandedper month Price perbushel Bushels suppliedper month 45 $5 77 50 4 73 56 3 68 61 2 61 67 1 57 Which of the following would occur if the government imposed a price floor (support price) of $4 per bushel in the wheat market shown in Exhibit 4-11?
A. Buyers would want to purchase more wheat than is supplied. B. Buyers would not purchase all of the wheat grown. C. Shortage of wheat would increase the price of wheat. D. Farmers would grow less wheat.
Perfect competition is efficient because all the following conditions hold except ________
A. total product is maximized B. firms maximize profit and produce on their supply curves C. consumers get a real bargain and pay a price below the value of the good D. firms minimize their average total cost of producing the good