Which of the following statements is most accurate regarding the characteristics of a perfectly competitive market
A: Firms" products are different.
B: The competitors never earn economic profits.
C: Barriers to entry into the market are nonexistent.
A: Firms" products are different.
B: The competitors never earn economic profits.
C: Barriers to entry into the market are nonexistent.
举一反三
- In monopolistically competitive markets, free entry and exit suggests that A: the market structure will eventually be characterized by perfect competition in the long run. B: all firms earn zero economic profits in the long run. C: some firms will be able to earn economic profits in the long run. D: some firms will be forced to incur economic losses in the long run.
- Which of the following is not characteristic of a monopolistic competitive market ？ A: There are many heads out there. B: Something different. C: Long-term economic profit. D: Free Entry and exit.
- In perfect competition, ________. A: there are restrictions on entry into the market B: firms in the market have advantages over firms that plan to enter the market C: only firms know their competitors' prices D: there are many firms that sell identical products
- Which of the following is least accurate regarding product development and marketing for firms under monopolistic competition A: Firms that bring new and innovative products to the market face relatively more elastic demand curves than their competitors. B: Relative to other types of competition, product innovation is critical to the pursuit of economic profits. C: Advertising is necessary to communicate the uniqueness of the firm’s products relative to its competitors.
- Which of the following correctly describes an oligopoly? A: A single firm has all of the market power. B: Several firms have market power and there is free entry and exit. C: Several firms have market power and there are barriers to entry. D: Several firms take the price as given and there is free entry and exit.