Homework Answers
Perfect competition:- it is a market structure in which large number of buyers and sellers sell a homogeneous product. The number of firms is so large that no one is able to control the market price. The price is beyond the control of individual buyers and sellers. There is free entry and exit of firm's in the perfect competition.
The correct option is (a).
Would lose all of their customers if they attempted to increase price above the prevailing market price.
Raising the price will lead to lose of potential customers in perfect competition. In perfect competition the price is determined at the point where demand and supply curve intersects. This point is called equilibrium point and the price and demand is called equilibrium price and Equilibrium demand respectively.
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Homogeneous product a several sellers and [ Select ]
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they [ Select ] ["have pricing power", "have minimal
pricing power", "have very little pricing power", "have no pricing
power"] which means they[ Select ] ["should
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advertise more"] to advertise
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below which a firm in the market will not produce any output in the
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2)...
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Homogeneous product a several sellers and [ Select ]
["unique", "Many Many", "few few", "3-4"] buyers easy
entry and exit.
2. Perfectly competitive firms are known as Price Takers because
they [ Select ] ["have pricing power", "have minimal
pricing power", "have very little pricing power", "have no pricing
power"] which means they[ Select ] ["should
advertise less", "have no incentive", "ought to advertise", "must
advertise more"] to advertise
3. The...
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curve of TC= 3Q^3 - 12Q^2 +16Q + 100, where Q is measured in
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below which a firm in the market will not produce any output in the
short run. ( i.e., the output for the shut down price)
a 2^1/2
b. 2
c. 1/2
d. 1/square root of 2
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