Micro-Economics Ch 13 Questions

Micro-Economics Ch 13 Questions - Name: _ Date: _ 1. One...

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Page 1 Name: __________________________ Date: _____________ 1. One characteristic of a perfectly competitive market is that there are ________ sellers of the good or service. A) one or two B) a few C) usually less than 10 D) hundreds or thousands of 2. If a local California avocado stand operates in a perfectly competitive market, that stand owner will be a: A) price-maker. B) price-taker. C) price-discriminator. D) price-maximizer. 3. All except one of the following are characteristics of perfect competition. Which is the exception? A) All firms produce the same standardized product. B) There are many producers and each has only a small market share. C) There are many producers; one firm has a 25% market share, and all the remaining firms have a market share of less than 2% each. D) There are no obstacles to entry into or exit from the industry. 4. Which of the following is not a characteristic of a perfectly competitive industry? A) Firms seek to maximize profits. B) Profits may be positive in the short run. C) There are many firms. D) There are differentiated products. 5. In perfect competition, each firm: A) is a price-maker. B) produces about half of the total industry output. C) produces a differentiated product. D) produces a standardized product. 6. The demand curve for a perfectly competitive firm is: A) perfectly inelastic. B) perfectly elastic. C) downward-sloping. D) relatively, but not perfectly elastic. 7. The assumptions of perfect competition imply that: A) individuals in the market accept the market price as given. B) individuals can influence the market price. C) the price will be a fair price. D) the price will be low.
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Page 2 8. Price-takers are individuals in a market who: A) select a price from a wide range of alternatives. B) select the lowest price available in a competitive market.
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Micro-Economics Ch 13 Questions - Name: _ Date: _ 1. One...

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