Which of the following is true in a perfectly competitive market?
a. The sellers can partially influence the price level in the market.
b. All firms have identical costs.
c. Entry or exit of new sellers into the market is restricted.
d. Buyers and sellers have incomplete information about the product and the market.
C
You might also like to view...
Consider two goods: peanut butter and jelly. If the price of jelly increases from $2 a jar to $3 per jar and the quantity demanded of peanut butter decreases from 50 jars to 45 jars, what is the cross elasticity of demand? Are the goods substitutes
or complements?
Refer to Figure 4-3. If the market price is $2.50, what is the consumer surplus on the second ice cream cone?
A) $0.50 B) $1.50 C) $3.00 D) $10.50
If the U.S. government decides to increase military spending, one opportunity cost will be lower spending on education
a. True b. False Indicate whether the statement is true or false
Suppose each of the 50 states had only one gasoline station, and all stations were the same size. The four-firm concentration ratio for the state of New York, based on the state data, is:
A. 0.08. B. 0.16. C. 1.0. D. 0.32.