Which of the following is not a characteristic of the structure of perfectly competitive markets?
A. Each individual firm is small in size relative to the overall market.
B. Few sellers.
C. Homogeneous product.
D. Easy, low cost entry and exit.
Answer: B
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If the cost of capital is 5% then the net present value of the investment is
a. $6,020.41 b. $7,380.95 c. -$7,380.95 d. $10,000
Unemployment insurance cannot eliminate the national costs of lost output due to unemployed labor
a. True b. False Indicate whether the statement is true or false
Each year, researchers at the Heritage Foundation and the Wall Street Journal look at 50 different categories of economic freedom for countries around the world. In each category, they give each nation a score based on extent of economic freedom in that category. What sorts of questions regarding the level of economic freedom might these researchers have asked within this survey which would help rank nations' economic freedom? Please list at least three questions.
What will be an ideal response?
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. Consumer expectations that the price of X will rise sharply in the future will:
A. increase D, decrease P, and increase Q. B. increase D, increase P, and increase Q. C. increase S, increase P, and increase Q. D. decrease S, increase P, and increase Q.