In a perfectly competitive market a an economic

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Microeconomics
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Chapter 9 / Exercise 3
Microeconomics
Arnold
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19)19)In a perfectly competitive market, A)an economic profit is certain.B)consumers are persuaded by advertising.C)each firm takes the good's price as given to it by the market.D)each firm sets its own price so that it is different from its competitors.Answer:C 20)20)Price taking behavior exists in 21)21)In a perfectly competitive industry, which of the following determines the market price? 4
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Microeconomics
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Chapter 9 / Exercise 3
Microeconomics
Arnold
Expert Verified
22)22)Because each perfectly competitive firm sells a product identical to that of the other firms, 23)23)The assumption that a perfectly competitive industry has many sellers, each selling an identicalproduct, leads to the conclusion that A)firms are price takers.B)there are many buyers.C)consumers get to see a variety of outputs.D)the economic profit will be positive in the long run.Answer:A 24)24)In perfect competition 25)25)If the minimum efficient scale of a firm is small relative to the demand for the good, then

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