Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Chapter 15, Problem 8MCQ
To determine
Among the given options, selecting the option that does not fit for
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The following statements are true in a perfect market except which one?
A. Resources are allocated efficiently because of competition
B. Price is equal to marginal costs C. Normal profit made in the long run
D. Firms do not operate at maximum efficiency
1. Why is water, which is essential to life, so cheap, while diamonds, which are not essential to
life, so expensive? Explain your answer using total utility (TU) and marginal utility (MU).
2. Discuss the advantages of perfect competition.
3. What is the shape and elasticity of the demand curve facing a perfectly competitive firm?
Why?
4. How does the firm determine how much to produce in the short run?
In perfect competition_______.
Select one:
a. demand for the good or service is small relative to the minimum efficient scale of a single producer.
b. the size of demand for the good or service relative to the minimum efficient scale of a single producer does not affect competition.
c. demand for the good or service can be small relative to the minimum efficient scale of a single producer as long as the goods or services are not identical.
d. demand for the good or service is large relative to the minimum efficient scale of a single producer.
Chapter 15 Solutions
Foundations of Economics (8th Edition)
Ch. 15 - Prob. 1SPPACh. 15 - Prob. 2SPPACh. 15 - Prob. 3SPPACh. 15 - Prob. 4SPPACh. 15 - Prob. 5SPPACh. 15 - Prob. 6SPPACh. 15 - Prob. 7SPPACh. 15 - Prob. 8SPPACh. 15 - Prob. 9SPPACh. 15 - Prob. 10SPPA
Ch. 15 - Prob. 11SPPACh. 15 - Prob. 1IAPACh. 15 - Prob. 2IAPACh. 15 - Prob. 3IAPACh. 15 - Prob. 4IAPACh. 15 - Prob. 5IAPACh. 15 - Prob. 6IAPACh. 15 - Prob. 7IAPACh. 15 - Prob. 8IAPACh. 15 - Prob. 9IAPACh. 15 - Prob. 10IAPACh. 15 - Prob. 11IAPACh. 15 - Prob. 1MCQCh. 15 - Prob. 2MCQCh. 15 - Prob. 3MCQCh. 15 - Prob. 4MCQCh. 15 - Prob. 5MCQCh. 15 - Prob. 6MCQCh. 15 - Prob. 7MCQCh. 15 - Prob. 8MCQ
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- In a perfectly competitive market Select one: a. each firm takes the good's price as given to it by the market. b. each firm sets its own price so that it is different from its competitors. c. an economic profit is certain. d. consumers are persuaded by advertising.arrow_forwardd. What is the deadweight loss in this market, if any? e. How does a firm decide to increase or decrease output? i. What do they do when marginal revenue is less than marginal cost? ii. What do they do when marginal revenue is more than marginal cost? f. When does a firm decided to shut down verses temporarily stopping production? g. In this market the demand curve is what? i. Short run ii. Long run h. In this market the supply curve is what? i. Short run ii. Long runarrow_forwardIn perfect competition market the goods which are sold are ___________ in naturearrow_forward
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