What are the main characteristics of a perfectly competitive market?
What will be an ideal response?
In a perfectly competitive market, there are large numbers of buyers and sellers; the products sold by the firms in the industry are homogeneous; both buyers and sellers have equal access to information; and any firm can enter or leave industry without serious impediments. As a result of these characteristics, all firms in the industry are price takers.
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The above figure shows the market for apples. If the government restricts output to no more than 300 pounds, then
A) 300 pounds of apples will be sold at $3. B) 200 pounds of apples will be sold at $3. C) no apples will be sold. D) None of the above.
The supply curve for a monopolist, in the short run, is defined in the same way as that for a competitive firm: it is the portion of the marginal cost curve above average variable cost
a. True b. False Indicate whether the statement is true or false
The percentage of workers who work part time for noneconomic reasons
A) has decreased from 30 percent of the labor force in 1980 to 20 percent in 2011. B) does not fluctuate much at all with the business cycle. C) has trended upward since 1980. D) fluctuates strongly with the business cycle. E) decreases during a recession as the number of discouraged workers increases.
Categorization of activities in an organization along product or geographic lines is called:
a. globalization. b. decentralization. c. functionalization. d. divisionalization.