Firms in perfectly competitive industries are unable to control the prices of the products they sell and earn a profit in the long run. Which of the following is one reason for this?
A) Owners of perfectly competitive firms realize that their short-run profits are temporary. Therefore, they either sell their businesses or develop other products that will earn short-run profits.
B) Firms in perfectly competitive industries can use advertising in the short run to persuade consumers that their products are better than those of other firms. But eventually consumers realize that all of the firms sell virtually identical products.
C) Firms from other countries are able to produce similar products at lower costs.
D) Firms in these industries sell identical products.
Answer: D
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In ________ market structure, a firm's output depends ________
A) an oligopoly; only on its own marginal revenue and marginal cost curves B) a monopolistically competitive; in part on its competitors' price and quantity decisions C) an oligopoly; in part on its competitors' price and quantity decisions D) a monopolistically competitive; only on its marginal revenue curve
Which of the following is infrastructure?
a. Training and education b. Police c. Highways d. All of the answers are correct.
What does the "double coincidence of wants" refer to?
Using concentration ratios, which is the more concentrated industry?
A. Industry X with a concentration ratio of 80.
B. Industry Y with a concentration ratio of 95.
C. Both industries have the same concentration ratio of 100.
D. There is no way to determine which industry has the higher concentration ratio.