Author Question: Perfect competition is characterized by a large number of buyers and sellers with identical products ... (Read 73 times)

mspears3 · **on:** Jun 30, 2018

Perfect competition is characterized by a large number of buyers and sellers with identical products and no significant barriers to entry.
a. True
b. False
Indicate whether the statement is true or false

Question 2

An increase in economic rent is simply a transfer from the buyer to the seller without any change in quantity. Identify the underlying assumption.
a. Quantity supplied remains unchanged even when economic rent increases.
b. Quantity supplied is positively related to economic rent.
c. The relation between quantity supplied and economic rent is indeterminate for nonrenewable resources.
d. Bargaining power of buyers is greater than sellers.
e. Consumer surplus is a positive function of economic rent.