Assume that all firms in this industry have identical cost curves, and that the market is perfectly competitive.
In the long run, there will be ________ firms in this market.
A. 15
B. 25
C. 10
D. 50
Answer: C
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Many people have observed that retail gas stations tend to operate very closely to one another. Explain the logic behind having a gas station at each corner of an intersection
What will be an ideal response?
One reason why McDonald's charges a single price for its products is that it is difficult and costly for the company to determine each individual consumer's willingness to pay
Indicate whether the statement is true or false
Government price setting _____
a. prevents firms from lowering their prices b. creates barriers to entry c. helps enforce collusion among industry members d. all of the above
A price system is considered to be efficient when
A) it fails to have the goods that consumers want. B) an underground market develops. C) all resources are allocated to the highest-valued uses. D) firms produce more than what consumers want.