In a competitive market, each seller has limited control over the price of his product because
a. other sellers are offering similar products.
b. buyers exert more control over the price than do sellers.
c. these markets are highly regulated by the government.
d. sellers usually agree to set a common price that will allow each seller to earn a comfortable profit.
a
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A way in which government can attempt to solve the problems caused by information asymmetry in the marketplace is:
A. statistical discrimination. B. signaling. C. mandating that information be shared. D. All of these are ways the government deals with information asymmetry.
Assume the development of a new technology that allows widgets to be produced for less. Also, assume that widgets are a key input in the production of whatchamacallits. As a result of this new technology, what would an economist expect to happen in the market for whatchamacallits?
a. the demand curve will shift to the left b. the supply curve will shift to the left c. the demand curve will shift to the right d. the supply curve will shift to the right e. none of the above
In a perfectly competitive market price takers exist because there are:
A. few buyers and many sellers. B. few sellers and buyers. C. many buyers and sellers. D. few sellers and many buyers.
Howie just bought a new digital camera to replace his old one. His old one works perfectly fine and would sell on Craigslist for $100. The fact that Howie would not pay $100 for it, yet continues to let it sit in his closet unused is explained by:
A. the implicit cost of ownership. B. the explicit cost of ownership. C. the explicit cost of sales. D. ignoring sunk costs.