Question

1. In a perfectly competitive market, ________.

a. Group of answer choices

b. bargaining over prices is a common phenomenon

c. there are restrictions on the entry of new firms

d. sellers produce identical goods

e. each seller charges a different price for its product

2. John is a tomato farmer and sells his crops in a perfectly competitive market at the price of $1 per pound. John wants to increase his farm revenue, ________.

a. so he would need to produce fewer tomatoes to do so

b. so he would need to charge a higher price for his tomatoes to do so

c. but there is no way he can do so.

d. so he would need to produce more tomatoes to do so

3. Price in a perfectly competitive market is ________.

a. affected by government policies

b. affected by the combined decision of all buyers and sellers

c. determined by the dominant seller

d. determined by buyers alone

4. A firm produces 200 units of a good when it employs seven workers. The marginal product of an eighth worker is 46 units. If the eighth worker is hired, the firm's total product will increase to ________.

a. 228 units

b. 322 units

c. 208 units

d. 246 units

Answer 1

a) "D"

The producer will produce goods that are identical i.e. homogeneous in the market.

b) "D"

He will have to produce more goods in the market to achieve more revenue in the market.

c) "B"

the price in the market is determined by the demand and supply forces together.

d) "D"

The firms will be producing 246 units in the market.