Which of the following is a defining characteristic of all perfectly competitive markets?

A. Consumers display strong brand loyalty.
B. All firms sell the same standardized product.
C. Each firm in the market faces a perfectly inelastic demand curve.
D. The market demand curve is perfectly elastic.


Answer: B

Economics

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Pizza is a normal good. Which figure above shows the effect of a decrease in consumers' incomes?

A) Figure A B) Figure B C) Figure C D) Figure D E) Both Figure B and Figure C

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When the expected inflation rate increases, the demand for bonds ________, the supply of bonds ________, and the interest rate ________, everything else held constant

A) increases; increases; rises B) decreases; decreases; falls C) increases; decreases; falls D) decreases; increases; rises

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When is a firm more likely to engage in excessively risky behaviors, when business is well, or when it is facing financial distress?

What will be an ideal response?

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If a game has a pure strategy Nash equilibrium then

A) it might also have a mixed strategy equilibrium. B) it does not have a mixed strategy equilibrium. C) at least one player has a dominant strategy. D) no player has a dominant strategy.

Economics