Which of the following must be present for a firm to maintain its market power for an extended period of time? A. Supply and demand B. Perfect competition C. Barriers to entry D. Profit maximization
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- Which of the following is a barrier to entry in a perfectly competitive industry? a)brand name recognition b)patents or copyrights c)economies of scale d) all of the above are correct e)none of the above is correctA monopoly might form if which of the following conditions of perfect competition were violated? Question 24Answer a. Many consumers b. Fully informed consumers c. Free entry and exit d. Firms produce identical productsWhat does it mean there is a low barrier to entry(low entry barriers) to perfect competition? what is meant by short-run, and long-run in market structure?
- Your business, which has some market power, has the following demand (D), marginal revenue (MR), marginal cost (MC), and average cost (AC) curves. Move point E to label the profit-maximizing price and quantity for your firm. If the goal of your business is to maximize profit, how much will it produce, and what price will it charge? -The business will exit the market because it is unable to cover its average costs. -The business will produce 40 units, and charge a price of $5. -The business will produce 30 units, and charge a price of $3. -The business will produce 30 units, and charge a price of $6.True or False: In a perfectly competitive market, firms have significant market power.no chagpt urgent. Which of the following is a barrier to entry in a perfectly competitive industry? a)brand name recognition b)patents or copyrights c)economies of scale d) all of the above are correct e)none of the above is correct
- What is the number of firms in a Perfect Competition and what is the price control of product by individual firms.Does the perfect competition market structure have barriers? If so list specific barriers to entry for the perfect competition market structure.Perfect competition is a theoretical market structure in which the followingcriteria are met: All firms sell an identical product. All firms are price takers.Market share has no influence on prices. Given the characteristics describedabovei. Describe the factors that drive profits to zero in perfectly competitivemarkets in the long run. Explain carefully the incentives that drive themarket to a long run equilibrium. ii. Why would a firm choose to operate at a loss in the short run? iii. When do firms decide to shut down production in the short run?
- Economic competition has evolved throughout history. Let's explore the the emerging competitive trend "co-opetition".A firm operates in a perfectly competitive market. Its marginal cost = to its marginal revenue. It is incurring economic losses . Based on this information, which of the following is true? a) An increase in output will decrease the forms economic losses. b) a decrease in output will decrease the firms economic losses. c) Any change in output will fail to result in positive economic profits. d) An increase in price will decrease the firms economic losses. e) the forms marginal revenue exceeds its outputs average total costExplain what is meant by a perfect competitor has no market power as applied to power system economics.