Author Question: Economists consider the model of perfect competition useful because: a. it is a standard for ... (Read 32 times)

james · **on:** Jun 30, 2018

Economists consider the model of perfect competition useful because:
a. it is a standard for analyzing producer and consumer benefits.
b. its assumptions exactly fit into actual conditions in some markets.
c. its assumptions can be easily replaced with realistic ones.
d. it is a standard for analyzing consumer choices.

Question 2

If market demand increases, a perfectly competitive firm will find:
a. its cost curves shifting up.
b. its profit-maximizing output level increasing.
c. its average revenue curve shifting down.
d. its marginal cost falling.
e. its profits decreasing.