In the context of economics, competition implies that:There is only one seller in the market.The same product is available at a variety of prices.There are multiple independent buyers and sellers in the market.Sellers can influence market prices by creating product shortages.

In the context of economics, a competitive market is one in which numerous buyers and sellers…

Answered: In the context of economics,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The following statements contain common errors. Identify and explain each error using the demand-supply graph. The lockdown has caused shutdown of many local fast food outlets. Assuming that the market for fast food is competitive, there will be increase in demand for fast food leading to higher prices.
True/False The market in which there are many sallers and buyers is called perfectly competitive market.
A competitive firm can sell any amount if the firm set a price equal to the market price. True or false?
Which of the following products/markets is most consistent with the perfect competition model? Apple iPhones a bustling farmers' market Kellogg's Frosted Flakes electric utilities automobiles 2 Adam Smith’s “invisible hand” refers to The mechanism that moves market price and quantity to equilibrium The natural tendency of markets to avoid monopolies and ensure competition The market’s incentive to lower price in order to increase quantity sold The lack of government role in the free market due to the market’s ability to self-regulate The tendency of firm’s to seek to merge in order to realize synergies and market dominance 3 A company facing inelastic demand for a product sees an increase in its costs after a worker strike forces a wage increase. What is likely to happen to the price and quantity sold of that product? Price will fall slightly while…
Does a market equilibrium exist in an oglipolistic market? If so, how is it determined?
Name-Brand Prescription Drugs Market—“Happy Pill”—that greatly improves life but is not essential to life. Using supply and demand analysis, explain what happens to the market price and quantity of a name-brand prescription drug Happy Pill if its patent expires. Using supply and demand analysis explain why Happy Pill might be advertised. Using supply and demand analysis, explain what would happen to the price and quantity of Happy Pills if there was a severe recession, and people lost their jobs, which included a health-care benefit that payed for prescription drugs.
a competitive firm can sell any amoun if the firm set a price equal to the market price
A market is in equilibrium when supply is equal to demand. the price is adjusting upward. the quantity supplied is equal to the quantity demanded. tastes and preference remain constant.
Market equilibrium takes place at the point where MC < MR True/ False
the presence of competition in free markets and why A)is undesirable because it results in unnecessary duplication of efforts b)usually result in better quality and lower prices c) is rare since most markets eventually evolve into monopolies d). is undesirable because one big firm can usually produce goods more efficiently than a large number of small firms
All markets that are not perfectly competitive have which of the following characteristics? Each firm's marginal revenue is always equal to the market price. The product that each firm sells has no close substitutes. Firms in the market have some control over price, that is, each firm faces a downward sloping demand curve. Firms will produce a level of output where marginal cost equals the minimum level of average cost.
The market for paperback detective novels is perfectly competitive. We have two types of consumers in the market- Regular and Occasional readers. Each Regular reader's demand curve is given by P=74-2Q. Each Occasional reader's demand curve is given by Q=94-6P Suppose there is only 1 reader of each type. What is market demand when market price is $59? Enter a number only. Remember, fractions of goods are possible.

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In the context of economics, competition implies that: There is only one seller in the market. The same product is available at a variety of prices. There are multiple independent buyers and sellers in the market. Sellers can influence market prices by creating product shortages.