A. All of these answers are characteristic of a competitive market
B. The are many buyers and sellers in the market
C. The goods offered for sale are largely the same.
D. Firms generate small but positive economic profits in the long run
E. Firms can freely enter or exit the market
- Firms in perfect competition face a?
- A. perfectly elastic demand curve B. perfectly inelastic demand curve C. perfectly elastic supply curve D. perfectly inelastic supply curve...
- If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
- A. downward sloping B. perfectly inelastic C. upward sloping D. perfectly elastic...
- The short run marginal cost curve cuts the short run total cost curve and short run average variable cost curve ?
- A. At their lowest points B. When they are declining C. When they are increasing D. When marginal revenue is zero...
- In the long run in perfect competition ?
- A. price = average cost = marginal cost B. price = average cost = total cost C. price = marginal cost = total cost D. Total revenue = Total variable cost...
- If a firm takes over a competitor then, according to porter’s 5 forces model ?
- A. Buyer power is higher B. Supplier power is higher C. Substitute threat is higher D. Rivalry is lower...