Zusammenfassung der Ressource
Frage 1
Frage
Why doesn´t an individual have the power to affect the price of a product in a perfectly competitive market?
Antworten
-
Because no individual has a part big enough of the market to affect it
-
Because an enterprise is the owner of the market
-
Because there is no competition
-
Because the market is unfair
Frage 2
Frage
In a perfect competition market, who determines the prices?
Antworten
-
The owners of firms
-
Consumers, by market supply and market demand
-
The product being produced
-
The availability of the product in the market
Frage 3
Frage
Why can´t a firm set its prices below market price?
Antworten
-
Because they would not have costumers, as they prefer other brands and would remain loyal to this other brands
-
The firm wouldn´t be able to acomodate all of the new costumers they would have, making demand to increase, costs to sky rocket and the firm having to raise prices to remove certain costumers
-
The market would see a decrease in the demand of the product, as it would become less exclusive so a shift in consumption towards homogenous products would be seen
-
As consumers are very inelastic, they would wan´t to see even a higher drop in the price, thus for waiting until that happens to consume
Frage 4
Frage
What can a firm in a perfectly competitive market choose?
Antworten
-
Price of the good
-
Demand for the good
-
Supply of the good
-
Output produced
Frage 5
Frage 6
Frage
Why is revenue usually higher in the short run?
Antworten
-
Because the firm is more motivated to work
-
Because the firm is highly recursive
-
Because there is less competition
-
Because the owner pays more attention
Frage 7
Frage
When does the entry to a market stop?
Antworten
-
When supply is low and demand is high
-
When demand is high and supply is low
-
Until a new market appears
-
Until price is average to total cost
Frage 8
Frage
Are the following characteristics of perfect competition? There are a large number of sellers, price can be changed by individual firms, and consumers have perfect knowledge
Frage 9
Frage
Perfect competition markets mean no profit
Frage 10