Which of the following statements about a perfectly competitive market is INCORRECT?
A. There are many sellers, each supplying a small quantity.
B. There are many buyers, each purchasing a small quantity.
C. The market sells homogeneous products.
D. Buyers and sellers cannot enter exit the market freely.
Answer: D
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When a firm is producing at the profit maximizing level of out put and P > ATC, the firm is:
A) breaking even. B) incurring an economic loss. C) earning an economic profit. D) earning a profit or incurring a loss depending on the level of total fixed costs.
Scarcity is caused by
A) unlimited wants running up against limited economic resources. B) lazy workers. C) an individual's budget that is insufficient to cover the expenses of certain goods or services. D) shortages.
Comparing _____ can give us some sense of what the multiplier actually is in the economy.
A. hard money to M2 B. hard money to M1 C. M1 to M2 D. hard money to fiat money
A profit-maximizing firm in a competitive market is able to sell its product for $7 . At its current level of output, the firm's average total cost is $10 . The firm's marginal cost curve crosses its marginal revenue curve at an output level of 9 units. The firm experiences a
a. profit of more than $27. b. profit of exactly $27. c. loss of more than $27. d. loss of exactly $27.