This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following best explains why a firm in a perfectly competitive market must take the ... (Read 32 times)

karlynnae

  • Hero Member
  • *****
  • Posts: 599
on: Jun 30, 2018
Which of the following best explains why a firm in a perfectly competitive market must take the price determined in the market?
 a. The short-run average total costs of firms that are price takers will be constant.
  b. If a price taker increased its price, consumers would buy from other suppliers.
  c. Firms in a price-taker market will have to advertise in order to increase sales.
  d. There are no good substitutes for the product supplied by a firm that is a price taker.

Question 2

Which of the following is true for a lower price elasticity of demand coefficient?
 a. The market is broadly defined.
  b. The quantity demanded is more responsive.
  c. Few substitutes exist.
  d. Many substitutes exist.
  e. All of these.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Sarahjh

  • Sr. Member
  • ****
  • Posts: 370
Reply #1 on: Jun 30, 2018
Answer to Question 1

b

Answer to Question 2

c


karlynnae

  • Member
  • Posts: 599
Reply 2 on: Jun 30, 2018
Great answer, keep it coming :)

skipfourms123

  • Member
  • Posts: 343
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Most childhood vaccines are 90–99% effective in preventing disease. Side effects are rarely serious.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

The first-known contraceptive was crocodile dung, used in Egypt in 2000 BC. Condoms were also reportedly used, made of animal bladders or intestines.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Independent assortment of chromosomes at meiosis explains Mendel’s ratio Independent assortment of chromosomes at meiosis explains Mendel’s ratio
Competitive inhibition Competitive inhibition
Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ... Neck stretch. Rest the receiver’s head on the palm of your right hand, taking a firm hold on the ...
Hydroelectric power: 2013 Global Market Hydroelectric power: 2013 Global Market
Competitive firms and maximization Competitive firms and maximization
Markets and Institutions Market Story Problem Markets and Institutions Market Story Problem
Video: Homeostasis (range of body conditions, normal limits, mild stresses & severe stresses)

For a complete list of videos, visit our video library