Which of the following industries most closely approximates the perfectly competitive model? (a) Automobile, (b) cigarette, (c) newspaper, or (d) wheat farming.
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Which of the following industries most closely approximates the
(b) cigarette, (c) newspaper, or (d) wheat farming.
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- Which of the following is NOT a charactersitic of the model of perfectly competitive market? a) Many sellers produce an identical product. b) Firms can increase their prices by reducing their product. c) Firms have freedome of entry into the market. d) No signs firm can influence the market price.Why is the perfect competition often used as a benchmark? Question 3 options: The perfect competition model is more frequently observed in the real world compared to other market models It provides a useful comparison to markets that operate in more complex, real-world conditions. It accounts for a variety of issues like pollution, inventions of new technology, poverty, and government programs that other models do not account for. In the real world, all markets are perfectly competitive, so this model allows us to compare them to one another.Which of the following markets is the closest to a perfectly competitive market? Question 10 options: Trash collection from your home The electricity market The market for internet services Fast food restaurant near DePaul
- Which of the following are characteristics of the perfectly competitive market model? buyers and sellers are vastly numerous there are barriers to entry goods are differentiated by brand names all firms use identical technologiesUsing the tools of economic analysis that you learned, analyze the behavior of the enterprise operating in the perfectly competitive market, in both the short and long term, if it achieves an economic loss in the short term.Which of the following markets is the closest to a perfectly competitive market? Question 5 options: The market for internet services Trash collection from your home Fast food restaurant near DePaul The electricity market
- Which of the following is not an assumption we make about perfectly competitive markets? a)Firms are price-takers b)Firms sell identical products c)Firms earn positive profit in the short-run but zero profit in the long-run d)Firms can freely enter or exit the market in the long-run e)All of the above are valid assumptionsLooking around your city, what businesses do you think come closest to the model of a perfectly competitive market? Explain why this is the case using correct economic terms and concepts.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…
- Suppose all firms in a perfectly competitive market structure are in long-runequilibrium. Then demand for the firms’ product increases. Initially, price andeconomic profits rise. Soon afterward, the government decides to tax most (but not all) of the economic profits, arguing that the firms in the industry did not earn the profits. Rather, the profits were simply the result of an increase in demand. What effect, if any, will the tax have on market adjustment?A Jakarta City cab operator appears to be making positive profits in the long run after carefully accounting for the operating and labor costs. Does this violate the competitive model? Why or why not?of the following, what is the best example of a perfectly competitive market? Select the best answer.A large city with a high number of automatic car washesA region with railway services provided by three large companiesA village with one hair salon