In a competitive market, each firm
A. has costs that are external (externalities).
B. is the single seller of that good.
C. can easily enter or exit the market.
D. sets its own prices.
Answer: C
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A firm that practices multimarket price discrimination will set the lower price in the market that has the most elastic demand
Indicate whether the statement is true or false
The European Union antitrust law focuses on which of the following?
A) efficiency B) the leveling of the competitive playing field C) furthering the social interest D) the means to monopolize a market
Which of the following would help to avert a healthcare crisis?
a. requiring employers to pick up 100 percent of the healthcare costs for their employees b. discouraging medical savings accounts since these provide additional funds for medical care, and therefore, they are likely to drive up medical prices c. discouraging the purchase of health insurance plans with small co-payments d. structural changes that would increase the competitiveness of the health insurance and medical services markets
The price of good X has a pattern such that P = $3 on Monday through Thursday of every week, and P = $2 on Fridays. If speculators begin participating in the market for good X, their actions will likely lead to a(n) ______________ in the price of good X on Monday through Thursday and a(n) _______________ in the price of good X on Friday
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease