Perfect Competition

Descrição

Perfect competition quiz
2016: Nicolas Cr
Quiz por 2016: Nicolas Cr, atualizado more than 1 year ago
2016: Nicolas Cr
Criado por 2016: Nicolas Cr quase 9 anos atrás
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Resumo de Recurso

Questão 1

Questão
Why doesn´t an individual have the power to affect the price of a product in a perfectly competitive market?
Responda
  • 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

Questão 2

Questão
In a perfect competition market, who determines the prices?
Responda
  • The owners of firms
  • Consumers, by market supply and market demand
  • The product being produced
  • The availability of the product in the market

Questão 3

Questão
Why can´t a firm set its prices below market price?
Responda
  • 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

Questão 4

Questão
What can a firm in a perfectly competitive market choose?
Responda
  • Price of the good
  • Demand for the good
  • Supply of the good
  • Output produced

Questão 5

Questão
What is revenue
Responda
  • Demand divided units sold
  • Units sold minus supply
  • Price charged times units sold
  • Income times supply

Questão 6

Questão
Why is revenue usually higher in the short run?
Responda
  • 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

Questão 7

Questão
When does the entry to a market stop?
Responda
  • 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

Questão 8

Questão
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
Responda
  • True
  • False

Questão 9

Questão
Perfect competition markets mean no profit
Responda
  • True
  • False

Questão 10

Questão
P=D
Responda
  • True
  • False

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