QUESTION 22 In a competitive market, A. no single buyer or seller can influence the price of the product. B. there are only a small number of sellers. C. the goods offered by the different sellers are unique. D. accounting profit is driven to zero as firms freely enter and exit the market.
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This statement is true. In a competitive market, no single buyer or seller has the power to influence the price of the product. The price is determined by the overall supply and demand in the market. B. This statement is false. In a competitive market, there are Show more…
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QUESTION 5: Why is a perfectly competitive firm said to be a price taker? a. It faces a downward-sloping market demand curve. b. It produces a good that is not produced by any other firm in the market. c. The firm's individual production is insignificant relative to the production in the industry. d. The firm's marginal revenue curve is downward sloping. e. There are no barriers to the entry of new firms in the industry.
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QUESTION 12 A firm that is the sole seller of a product without close substitutes is a. perfectly competitive b. monopolistically competitive c. a monopolist d. an oligopolist
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A perfectly competitive firm a. chooses its price to maximize profits. b. sets its price to undercut other firms selling similar products. c. takes its price as given by market conditions. d. picks the price that yields the largest market share.
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