False
First of all it should be understood that in competitive market the price is decided only by the market forces that is demand and supply and not by the buyers and the sellers
So in this market, there is no need of advertisement
In the long run firms earn normal profit
Advertisment is generally done in in monopolistic market where products are slightly differentiated in terms of shape, size, colour etc
Competitive firms are price takers largely because of intensive advertising by their competitors True or False...
In a purely competitive market, firms are considered price takers. Why is this important? Which characteristic of the purely competitive market makes firms price takers?
Microeconomics: Please explain why firms in a competitive market are price takers.
23. When firms are said to be price takers, it implies that if a firm raises its price, a. buyers will go elsewhere. b. buyers will pay the higher price in the short run. c. competitors will also raise their prices. d. firms in the industry will exercise market power.
Explain your reasoning and write legibly Why are perfectly competitive firms price-takers? Choose one industry that is likely to be perfectly competitive and describe why. Which of the characteristics of perfect competition do you find to be least realistic and why?
QUESTION 9 What type of firms are in a perfectly competitive market? O Price-takers O Price-searcher Quantity-taker O Cost-maximizer QUESTION 10 When is welfare (or total surplus) maximized? O When all consumers who value chocolate are able to buy chocolate. O When the total net gain to producers is minimized. O When the market is in equilibrium. O When all producers are able to sell their chocolate.
Advertising is most widely seen in monopolistically competitive markets and oligopoly markets. True False In the long run, only monopolists and oligopolists can make positive economic profits. True False When markets do not lead to the most efficient allocation of resources for society as a whole, then there has occurred market failure. True False The most efficient point of production occurs at the bottom of the average total cost (ATC) curve. True False Oligopoly markets are different from other market...
Question 16 Marginal revenue and price are equal for competitive firms because: price is the same as average revenue. its demand curve is upward sloping. price is constant for all levels of output. price must decrease as quantity increases. Question 17 2 pts An industry's cost may decrease in the long run due to: constant returns to scale. re-economies of scale. economies of scale. diseconomies of scale. Question 18 2 pts Which of the following is true for a monopolist?...
Please answer my questions: True or False and Explain 5)In a perfectly competitive market, if price is above minimum average variable cost, then firms will enter until price is equal to minimum average variable cost. 6)A firm in a competitive industry is assumed to set their price to cover costs and a normal profit. 8)In a competitive market, a firm is said to shutdown when it is unable to pay its existing debts. 9)A monopolist can never earn excess profits...
What is the difference between firms that are price takers and those that are price searchers?
True or False: and can you tell me why. In a competitive market where the price is below the average variable cost, new firms enter the industry in the long run and increase the equilibrium supply