In perfect competition, each firm ________.
A: can influence the price that it charges
B: produces as much as it can
C: is a price taker
D: faces a perfectly inelastic demand for its product
A: can influence the price that it charges
B: produces as much as it can
C: is a price taker
D: faces a perfectly inelastic demand for its product
C
举一反三
- In both perfect competition and monopolistic competition, each firm A: sells identical products. B: faces a downward-sloping demand curve its product. C: has no monopoly power. D: can enter or exit the market freely.
- Which one of the following statements is TRUE for BOTH perfect competition and monopolistic competition? A: Each type of firm faces a downward sloping demand curve. B: Each type of firm produces a homogeneous product. C: In the long run, firms in both industries make zero economic profit. D: Each type of firm competes on product quality and price.
- Under the monopolistic competition, there are many competitors in the market. But each firm sells a slightly different product, which can form some market leaders. Each firm makes independent decisions about price and output.
- Select the statement that distinguishes monopolistic competition from perfect competition. A: No barriers to entry/exist in monopolistic competition. B: A firm in monopolistic competition can set its own price and output. C: A firm in monopolistic competition makes zero economic profit in the long run. D: Close substitutes are available in monopolistic competition.
- If a firm in a perfectly competitive market tries to raise its price above the going market price, then:
内容
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In monopolistic competition, the firm can increase price and still sell some output because:
- 1
The perfectly competitive firm faces a demand curve that is ________ and ________:
- 2
When demand is inelastic the price elasticity of demand is
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Which of the following characteristics is common to monopolistic competition and perfect competition? A: Firms produce identical products. B: Entry barriers into the industry are low. C: Each firm faces a downward-sloping demand curve. D: Firms take market prices as given.
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Which of the following would occur if a single farm in perfect competition lowered its price below the long-run equilibrium market price?