Which of the following is the best example of a perfectly competitive firm?
A. DeBeers Diamond Company
B. your local cable television company
C. Tino's Italian Eatery, a local restaurant
D. Jones's wheat farm in eastern Washington
Answer: D
You might also like to view...
Refer to the market diagram. Relative to the surplus they would receive in a competitive market, consumers lose how much surplus because there is a monopoly?
The following questions refer to the accompanying market diagram. PC and QC are the equilibrium price and quantity if the firm behaves competitively, and PM and QM are the equilibrium price and quantity if the firm is a simple monopoly.
a. Area F + G + H
b. Area C + D + E
c. Area E + H
d. Area A + B
If consumers experience an decrease in lifetime income, current spending will ________, current saving will ________, and future spending will ________
A) decrease; decrease; decrease B) increase; decrease; decrease C) increase; decrease; increase D) increase; increase; decrease E) decrease; increase; increase
Which of the following is the government most likely to discourage because of the existence of externalities?
A. Thermal pollution from a power plant that improves fishing downstream. B. All goods and services produced by monopolies. C. Foods that taste good. D. Cars that create an excessive amount of exhaust fumes.
Which would be a qualification to the view that oligopoly is allocatively and productively inefficient?
A. Oligopolies may purposely keep prices below short-run profit-maximizing levels to bolster barriers to entry. B. Less foreign competition has stimulated more price competition in oligopolies. C. The more collusive practices of oligopolies lead to more profit-sharing among firms in the industry. D. Oligopolies are less technologically competitive so they lose market share.