If a perfectly competitive firm is a price taker, then which of the following is true?
a. Pressure from competing firms will force acceptance of the prevailing market price.
b. The firm must be a relatively small player compared to its competitors in the overall market.
c. The firm can increase or decrease its output without affecting the overall quantity supplied in the market.
d. Quality differences will be very perceptible and will play a major role in purchasers' decisions.
a. Pressure from competing firms will force acceptance of the prevailing market price.
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When a country allows trade and becomes an importer of coal,
a. the losses of the domestic producers of coal exceed the gains of the domestic consumers of coal. b. the losses of the domestic consumers of coal exceed the gains of the domestic producers of coal. c. the gains of the domestic producers of coal exceed the losses of the domestic consumers of coal. d. the gains of the domestic consumers of coal exceed the losses of the domestic producers of coal.
An important difference between the GDP deflator and the consumer price index is that
a. the GDP deflator reflects the prices of goods and services bought by producers, whereas the consumer price index reflects the prices of goods and services bought by consumers. b. the GDP deflator reflects the prices of all final goods and services produced domestically, whereas the consumer price index reflects the prices of goods and services bought by consumers. c. the GDP deflator reflects the prices of all final goods and services produced by a nation's citizens, whereas the consumer price index reflects the prices of all final goods and services bought by consumers. d. the GDP deflator reflects the prices of all final goods and services bought by producers and consumers, whereas the consumer price index reflects the prices of all final goods and services bought by consumers.
What is likely to occur over the long run if it is easy for new firms to enter an oligopolistic industry?
a. The general level of prices will begin to approach average total cost. b. The general level of prices will rise well above average total cost. c. It will become easier for a cartel to form consensus about pricing decisions. d. The industry will become more oligopolistic and could trigger an antitrust probe.
Which of the following markets can most accurately be described as monopolistically competitive?
A. Electricity B. Toothpaste C. Apples D. Milk