What are the characteristics of a perfectly competitive industry?
In a perfectly competitive industry there are many buyers and sellers and there are relatively low barriers to entry and exit from the industry. Firms are price takers since they are such a small portion of the total market and produce homogeneous products.
You might also like to view...
When government expenditures are greater than tax revenues
A) there will be budget surplus. B) the public debt will be reduced. C) there will be budget deficit. D) automatic stabilizers do not kick in.
Organized exchanges where securities and financial instruments are bought and sold are called
A) financial intermediaries. B) financial markets. C) banks. D) financial branches.
Free trade leads to an overall improvement in the standard of living in a country because everything is produced at the lowest possible cost
a. True b. False Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. Footballs and football helmets are considered to be complements. 2. Other things held equal, rising income usually leads to a leftward shift of the demand curve. 3. The vital statistics of the potential consumer population include size, race, income, and age characteristics. 4. Higher prices for a good or service provide incentives for producers to make or sell less of it.