Three of these are a condition for perfect competition.
a. Many buyers and sellers participate in the market.
b. Sellers offer a wide variety of products.
c. Buyers and sellers are well informed about products.
d. Sellers are able to enter and exit the market freely.
Ans: b. Sellers offer a wide variety of products.
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If a tax was instituted such that every dollar collected in taxes from high income households resulted in a distribution of $.80 to low income households
A) efficiency and equality of incomes would both decrease. B) equality of incomes would increase but efficiency would decrease. C) efficiency would increase but equality of incomes would decrease. D) efficiency and equality of incomes would both increase.
In the above figure, if the market is competitive and unregulated, then at the equilibrium amount of output the marginal social benefit is
A) less than the marginal cost to producers. B) greater than the marginal social cost. C) equal to the marginal cost to producers. D) equal to the marginal private benefit from consumption.
In the exporting country, an export subsidy will
A) help consumers and raise the overall economic welfare of the exporting country. B) hurt consumers but raise the overall economic welfare of the exporting country. C) hurt consumers and lower the overall economic welfare of the exporting country. D) help consumers but lower economic welfare of the exporting country. E) help consumers and have no effect on the economic welfare of the exporting country.
The two basic reasons why a monopoly exists are barriers to entry and cost advantages
a. True b. False Indicate whether the statement is true or false