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Author Question: Which of the following is NOT a characteristic of perfectly competitive markets? A) The ... (Read 62 times)

tnt_battle

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on: Jul 1, 2018
Which of the following is NOT a characteristic of perfectly competitive markets?
 
  A) The government restricts the number of producers through licensing requirements.
  B) All market participants are price-takers.
  C) It is easy to find a trading partner.
  D) All products are identical.

Question 2

If a firm has market power in the output market but buys labor in a competitive market, it will hire the same quantity of labor that a competitive firm will.
 
  Indicate whether the statement is true or false


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IRincones

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Reply #1 on: Jul 1, 2018
Answer to Question 1

A

Answer to Question 2

False. Since the firm has market power, it must lower price if it wishes to sell more. It will wish to sell fewer units than a competitive firm, and, therefore, hire less labor than a competitive firm does.


tnt_battle

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Reply 2 on: Jul 1, 2018
YES! Correct, THANKS for helping me on my review

bbburns21

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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