As we all know that in real situation a perfect word never exist.
In terms of market also,perfect competition is an ideal way to represent the market .
but a real scenario it is not possible .
Say for example a vegetable is a perfectly competitive market and have same shape, size and colour.
But if we look deeply inside then they differ in quality ,size and various specific specifications .
It is not realistic .
Option C is true
The market model of pure competition is: A. frequently encountered in the real world B. a theoretical model of how a ca...
2. Why should we care about correctly modeling imperfectly competitive markets? A. Most real-world markets are imperfectly competitive. B. Correct models help us explain how market structure influences firm behavior and consequent market performance. C. Understanding how these markets work allows us to intervene with welfare-enhancing policies when necessary, and to know when policy tools might not be very helpful. D. All of these.
The world of imperfect competition O A. lies between the extremes of perfect competition and monopoly. O B. is a world where firms battle over market shares. O C. is a world where economic profits may or may not persist in the long run. OD. is described by all of the above. Monopolistic competition is an industry characterized by a O A. small number of firms producing identical products, with barriers to entry for firms. OB.small number of firms producing...
In pure or perfect competition: OA. there are no barriers to entry B. firms are producing a standardized product O C. the individual firm faces a perfectly elastic demand curve O D. all of the above E. none of the above
Which of the following industries might be classified in pure or perfect competition? O A. restaurants O B. software design O C. automobile manufacturing O D. all of the above O E. none of the above
In a pure market economy, A. there is no role for government. B. government intervention might be needed. C. large markets where people meet to buy and sell are required. D. all of these answer options are correct.
In pure competition, price will equal: O A. marginal revenue O B. average fixed costs O C. total costs O D. none of the above
10. Consider a pure exchange competitive market economy with two individ- uals, A and B, and two commodities, x and y, whose prices are denoted by px and py, respectively. Individual A lexicographically prefers x to y. Individual B's utility function is min{x,y}. Both individual A's and B's endowment is (50,50). A competitive equilibrium price ratio, Px/py, for this economy (a) exists and is equal to 1 (b) exists and is less than 1 (c) exists and is greater than...
LAS AO Price Pure SAS level v Real GOP Refer to figure 3 above 2) The economy Is In a short run equilibrium at 01, which is to the left of OF {full employment level of real output). What is the mostly like concern of policy makers A. Rising price levels B. An excess of externalities in the market C. High levels of unemployment D. Crowding our as result of high budget defecits E. An overallocation of scarce resources creating...
Help with #2 please. 2. Which explains why individual firms under pure competition would not find it beneficial to advertise their product? A. Firms produce a standardized/homogeneous product. B. The quantity of the product demanded is very large. C. The market demand curve cannot be increased. D. Firms do not make long-run profits.
1. In a market economy, ___________________. a. economic equality is a natural outcome. b. individuals are given incentives to work hard c. government interferes with the economy frequently In a command economy, ________. a. businesses and consumers are assumed to be the best judges of how resources should be allocated b. the government sets goals and determines the price and quantity of what is produced c. each enterprise sets its goals before making reports to the central government Governments should...