Which of the following is not a characteristic of the structure of perfectly competitive markets?
a. Easy, low cost entry and exit.
b. Each individual firm is small in size relative to the overall market.
c. Few sellers.
d. Homogeneous product.
Which of the following is a key characteristic of the long-run competitive equilibrium that distinguishes it from the short-run competitive equilibrium?
a. Free entry to reduce short-run profits, or free exit to reduce short-run losses.
b. Marginal revenue is greater than marginal cost.
c. Average revenue is less than average cost.
d. Economic profits are positive, but cannot be negative.
Which of the following is a characteristic of a competitive price-taker market?
a. Profit maximizing firms in the market will expand output until price equals average variable cost.
b. There are many firms in the market, each producing a small share of total market output.
c. The product produced by each of the firms is differentiated.
d. The market demand curve for the product is a horizontal line.
A perfectly competitive market is characterized by the free entry and exit of firms.
True or False
If a perfectly competitive firm cannot cover all of its costs, then it should shut down in the short run.
True or False
A perfectly competitive firm shuts down in the short-run when the market price is less than the average variable cost.
This question was answered on: Dec 08, 2020
Buy this answer for only: $15
This attachment is locked
We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)
Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
About this QuestionSTATUS
Dec 08, 2020EXPERT
GET INSTANT HELP/h4>
We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.
You can also use these solutions:
- As a reference for in-depth understanding of the subject.
- As a source of ideas / reasoning for your own research (if properly referenced)
- For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
NEW ASSIGNMENT HELP?
Order New Solution. Quick Turnaround
Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.
WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.