Firms are "price makers" if they A) have sufficient market power to set their product price....
Firms are "price makers" if they
A) have sufficient market power to set their product price.
B) make the market price their product price.
C) make their product price competitive.
D) None of the above
Homework Answers
The right answer is option A, that is, have sufficient market power to set their product price because if the firms have market power it means they are able to control the prices and they can set prices of the product sold by them.
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Firms are "price makers" if they
A) have sufficient market power to set their product price....
What effect does increasing competition have on price for firms with market power? 1It drives the...
What effect does increasing competition have on price for firms with market power? 1It drives the price down to the level of costs. 2Price enters a cycle of ups and downs. 3It inspires product differentiation and higher prices. 4It pushes the price up above marginal revenue.
Firms are said to have “market power” when they have some ability to influence market price...
Firms are said to have “market power” when they have some ability to influence market price and maintain economic profits. If a business has market power, we can infer that there is some barrier to entry restricting the entry of new firms. Provide an example of a firm that has market power due to a barrier to entry. Be sure to describe the type of barrier to entry that is restricting competition in this market. Please use an original response...
TU) UdlIT IS. In a perfectly competitive market: each firm produces a unique product and chooses a price that maximize...
TU) UdlIT IS. In a perfectly competitive market: each firm produces a unique product and chooses a price that maximize there are very few firms, and each controls a large segment of the market. entry into the industry is restricted in the long run. there are many relatively small firms, and each firm is a price-taker. c. t If a firm is a price-taker, it: sells its product at the price determined by the market. sells its product at the...
9 Firms that exhibit price-taking behavior a wait for other firms to set price, take it...
9 Firms that exhibit price-taking behavior a wait for other firms to set price, take it as given, and charge a higher price. b have outputs that are too small to infuence market price and thus take it as given. c take pricing behavior in their own hands. d are independently capable of setting price. 10 The short run is a a period of time in which at least one input cannot be varied b when firms are stuck with...
TRUE OR FALSE A few firms with market power selling an identical product and competing over...
TRUE OR FALSE A few firms with market power selling an identical product and competing over price arrive to the competitive equilibrium. In an oligopoly setting, joint profits are the highest when firms act according to a Stackelberg model. In the presence of a negative externality generated by producing a good, a competitive market will produce less of that good than is socially optimal. An example of the tragedy of the commons is when farmers pump more groundwater from an...
TRUE/FALSE QUESTIONS 23. A few firms with market power selling an identical product and competing over...
TRUE/FALSE QUESTIONS
23. A few firms with market power selling an identical product and competing over price arrive to the competitive equilibrium. 24. In an oligopoly setting, joint profits are the highest when firms act according to a Stackelberg model. 25. In the presence of a negative externality generated by producing a good, a competitive market will produce less of that good than is socially optimal. 26. An example of the tragedy of the commons is when farmers pump more...
When new firms enter a perfectly competitive market, their entry will: a. increase the price of...
When new firms enter a perfectly competitive market, their entry will: a. increase the price of the produc b. drive down profits of existing firms in the market c. shift the market supply curve to the left d. increase demand for the product
18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices...
18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices nor quantities. C) quantiies but not prices D) prices but not quantities 19. The perfectly competitive firm faces a perfectly elastic demand curve because A) t has the ability to set the price and force everyone to buy at that price. it has no ability to control price. B) C) t doesn't; it faces a perfectly inelastic demand curve D) it doesn't; everyone knows...
When firms have market power, it means that they: Multiple Choice are a price taker. can...
When firms have market power, it means that they: Multiple Choice are a price taker. can noticeably affect the market price. do not affect the market quantity offered for sale can earn as much profit as they want.
QUESTION 10 Firms have a competitive advantage when a. They can deliver the same product benefits as their competit...
QUESTION 10 Firms have a competitive advantage when a. They can deliver the same product benefits as their competitors but at a lower cost b. They can deliver superior product at a similar cost c. Both of the above d. None of the above QUESTION 11 All of these allow a firm to differentiate its product, except a. Reducing quality b. Limiting availability c. Product branding d Advertising QUESTION 12 A price elasticity of demand of -0.67 implies a. Demand...
TU) UdlIT IS. In a perfectly competitive market: each firm produces a unique product and chooses a price that maximize there are very few firms, and each controls a large segment of the market. entry into the industry is restricted in the long run. there are many relatively small firms, and each firm is a price-taker. c. t If a firm is a price-taker, it: sells its product at the price determined by the market. sells its product at the...
9 Firms that exhibit price-taking behavior a wait for other firms to set price, take it as given, and charge a higher price. b have outputs that are too small to infuence market price and thus take it as given. c take pricing behavior in their own hands. d are independently capable of setting price. 10 The short run is a a period of time in which at least one input cannot be varied b when firms are stuck with...
TRUE/FALSE QUESTIONS
23. A few firms with market power selling an identical product and competing over price arrive to the competitive equilibrium. 24. In an oligopoly setting, joint profits are the highest when firms act according to a Stackelberg model. 25. In the presence of a negative externality generated by producing a good, a competitive market will produce less of that good than is socially optimal. 26. An example of the tragedy of the commons is when farmers pump more...
18. In a perfectly competitive market, individual firms set: A) prices and quantities B) neither prices nor quantities. C) quantiies but not prices D) prices but not quantities 19. The perfectly competitive firm faces a perfectly elastic demand curve because A) t has the ability to set the price and force everyone to buy at that price. it has no ability to control price. B) C) t doesn't; it faces a perfectly inelastic demand curve D) it doesn't; everyone knows...
When firms have market power, it means that they: Multiple Choice are a price taker. can noticeably affect the market price. do not affect the market quantity offered for sale can earn as much profit as they want.
QUESTION 10 Firms have a competitive advantage when a. They can deliver the same product benefits as their competitors but at a lower cost b. They can deliver superior product at a similar cost c. Both of the above d. None of the above QUESTION 11 All of these allow a firm to differentiate its product, except a. Reducing quality b. Limiting availability c. Product branding d Advertising QUESTION 12 A price elasticity of demand of -0.67 implies a. Demand...
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