What are the conditions that characterize the sellers' side in a perfectly competitive market?
What will be an ideal response?
Three conditions characterize the sellers' side in a perfectly competitive market. These are:
a) A large number of sellers participate in the market and no single seller has a large market share.
b) All sellers in the market produce identical goods.
c) There is free entry and exit of sellers in the market.
You might also like to view...
Austerity advocates argue that stimulus measures paid for with borrowed money:
A. are the best way to speed up an economic recovery. B. will lead to a reduction in the government budget deficit. C. will lead to substantial inflation and sharply higher interest rates. D. will generate substantial tax revenue for the government.
In the figure above, what is Gap's economic profit?
A) zero B) $5,000 C) -$5,000 D) -$1,160
The price system automatically leads to an efficient allocation of inputs among the different production processes.
Answer the following statement true (T) or false (F)
Unlike consumption, which is fairly stable over time, investment is subject to erratic fluctuations
Indicate whether the statement is true or false