Consumers do not have a strong preference for the output of one seller over that of another in a perfectly competitive market because:
A. there a large number of firms in the market.
B. the firms sell a standardized product.
C. there are no barriers to entry.
D. an individual firm has control over price.
Answer: B
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Everything else held constant, a stronger dollar benefits ________ and hurts ________
A) American businesses; American consumers B) American businesses; foreign businesses C) American consumers; American businesses D) foreign businesses; American consumers
A monopolistically competitive firm that earns a profit in the short run will definitely incur a loss in the long run
a. True b. False Indicate whether the statement is true or false
If the interest rates in the Eurozone increase, then which of the following is likely to happen?
(a) Deposits would increase in American banks. (b) Money would flow into the European banking system. (c) The euro would tend to depreciate relative to the dollar. (d) None of the above.
The argument that money should be given instead of in-kind help to welfare recipients is based on the idea that
A. welfare recipients cannot be trusted to use the in-kind help properly. B. in-kind help is not wanted. C. money allows more options and maximizes individual freedom. D. in-kind assistance does not go through the market system.