Author Question: Which of the following is true in a perfectly competitive market? a. The sellers can partially ... (Read 37 times)

chads108 · **on:** Jun 30, 2018

Which of the following is true in a perfectly competitive market?
a. The sellers can partially influence the price level in the market.
b. All firms have identical costs.
c. Entry or exit of new sellers into the market is restricted.
d. Buyers and sellers have incomplete information about the product and the market.

Question 2

Under perfect competition, entry of new firms into the market in the long run tends to:
a. raise the aggregate supply.
b. raise the level of profit of the existing firms.
c. raise the aggregate demand for goods.
d. reduce the degree of competitiveness in the market.
e. reduce the market power of the existing firms.