Perfect competition is a market structure
A. resulting from individual firms selling highly differentiated products.
B. in which any firm would have serious impediments to entry or exit.
C. where there is significant regulation and markets are always efficient.
D. in which individual buyers and sellers have no effect on the market price.
Answer: D
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Sequential games are used to analyze
A) second-price auctions. B) cartels. C) situations in which one firm acts and other firms respond. D) firms that are subject to the prisoner's dilemma.
A monopolist can charge a high price if:
a. the quantity demanded of its product is positively related to price. b. the demand for its product is relatively price-elastic. c. the demand curve for its product is negatively sloped. d. the demand for its product is relatively price-inelastic. e. there exist a large number of substitutes for its product.
Individuals face scarcity; whole societies do not
a. True b. False Indicate whether the statement is true or false
During the Great Depression, automatic stabilizers ______.
a. prevented a complete economic meltdown b. deepened the economic crisis c. were not yet in place d. took too long to take effect