A perfectly competitive firm need never consider
a. price because it cannot control price
b. its fixed cost because it cannot shut down
c. its market share because advertising keeps it competitive
d. the effect of its own production on price
e. barriers to entry because the barriers never change
D
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A surplus is said to exist when, at prevailing prices,
A) demand is greater than supply. B) quantity supplied is greater than quantity demanded. C) scarcity is eliminated. D) supply and demand are in harmonic equilibrium.
Perfectly competitive firms will sometimes operate even though they incur an economic loss in the short run
Indicate whether the statement is true or false
Dremel Tools Dremel sells a high speed rotary tool appropriate for many workshop projects. They have developed hundreds of accessories and bits for their tools for many different applications. Why is the markup on the accessories higher than the markup on the rotary tools?
In the market for saving, the price is the:
A. inflation rate. B. real interest rate. C. nominal interest rate. D. relative price.