Why can't a firm in a perfectly competitive industry charge a ...

[dbose]

Why can't a firm in a perfectly competitive industry charge a price above the market-clearing price?
 a. Government-imposed price ceilings prevent prices from being raised.
 b. Firms in a perfectly competitive industry face significant barriers to entry.
  c. Perfectly competitive firms are price searchers.
 d. Numerous competitors produce the same product and charge the market price.

Question 2

With the passage of time as the availability of an exhaustible resource declines, the cost of extraction of the resource increases.
 a. True
  b. False
  Indicate whether the statement is true or false

[ky860224]

Answer to Question 1

d

Answer to Question 2

True