Perfectly competitive firms
A. are large relative to the size of the market.
B. are price makers.
C. sell identical products.
D. All of the above are correct.
Answer: C
You might also like to view...
As information technology improves, the lending role of financial institutions such as banks should
A) increase somewhat. B) decrease. C) stay the same. D) increase significantly.
The basis for designing an effective export strategy most likely begins with ________.
A) identifying and developing the firm's core competencies B) hiring local personnel in target markets to build the business C) enlisting the support of an export management company D) simultaneously targeting a large number of foreign markets
Above the shutdown point, a competitive firm's supply curve coincides with its:
A. marginal revenue curve. B. ?marginal cost curve. C. ?average variable cost curve. D. ?average total cost curve.
Effective limit pricing between one incumbent firm and one potential entrant involves:
A. the incumbent linking the pre-entry price to post-entry profits only. B. the incumbent linking the pre-entry price to post-entry profits and the incumbent reducing price below the monopoly price to prevent entry. C. the incumbent reducing price below the monopoly price to prevent entry only. D. None of the statements are correct.