hinsafdar

A firm has the following characteristics:

• relatively small in size.
• marginal revenue is equal to the selling price.
• economic profits will not be earned for any significant period of time.

The firm is best described as existing in a(n):

A) price searcher market.

B) monopolistic market structure.

C) purely competitive market.

---

The firm being described is a price taker firm in a purely competitive market. These firms must sell their product at the going market price, there are no barriers to entry, and there are a large number of firms that produce a homogeneous product.

hinsafdar

An economic market characterized by a large number of independent firms all producing identical products is best described as:

A) monopolistic competition.

B) monopoly.

C) perfect competition.

---

In a perfectly competitive economic market, there are many independent firms, each seller is small relative to the total market, and there are no barriers to entry or exit.

hinsafdar

Which of the following most accurately describes the competitive structure that is characterized by a firm that operates with the lowest average total cost and has the capacity to produce all of an industry’s output?

A) Natural monopoly.

B) Competitive monopoly.

C) Oligopoly.

---

A natural monopoly is characterized by a single firm within the industry that has sufficient capacity to meet the entire demand of an industry because at that scale the lowest average total cost is achieved.

hinsafdar

Which of the following most accurately describes a market structure that has one seller of a specific, well-defined product that has no good substitutes?

A) Monopoly.

B) Perfect competition.

C) Oligopoly.

---

A monopoly is characterized by one seller, a specific and well-defined product for which there is no good substitutes, and high barriers to entry.

hinsafdar

Which one of the following structures is characterized by free entry and exit, a differentiated product, and price searcher behavior?

A) Monopolistic competition.

B) Oligopoly.

C) Pure competition.

---

Monopolistic competition is another name for competitive price-searcher markets. There are a large number of independent sellers, each produces a differentiated product, each market has a low barrier to entry, and each producer faces a downward sloping demand curve.

hinsafdar

Assume that the market for paper supplies and the market for toothpicks have the following characteristics:

The Market for Paper Supplies is comprised of:

• A large number of independent sellers

• Differentiated products

• Low barriers to entry/exit

The Market for Toothpicks is comprised of:

• A large number of independent sellers

• Homogeneous products

• No barriers to entry/exit

The Papyrus Company operates in the market for paper supplies and Wudden Floss operates in the toothpick market. The sales managers for both companies want to know how a change in price will affect the quantity sold.

Which of the following choices best completes the following sentence? If both firms increase prices, the quantity sold by Papyrus Company will:

A) increase, and the quantity sold by Wudden Floss will decrease.

B) decrease, and so will the quantity sold by Wudden Floss.

C) decrease, and Wudden Floss will sell nothing.

---

Papyrus Company is an example of a price searcher engaged in monopolistic competition (low barriers to entry). Thus, the company faces a downward sloping demand curve and highly elastic demand. An increase in price will result in fewer units sold. Wudden Floss is an example of a price taker operating in a purely competitive market. Thus, the firm faces a horizontal demand curve and perfectly elastic demand. An increase in price will result in no units sold. In a purely competitive market, the firm must take the market price.

hinsafdar

The type of economic market that features a large number of competitors offering differentiated products is best characterized as:

A) perfect competition.

B) monopolistic competition.

C) oligopoly.

---

Monopolistic competition is used to describe markets where there are a large number of competitors producing differentiated products.
In perfect competition all firms produce identical products. In an oligopoly there is a small number of firms.

terpsichorefan

thanks for your sharing. how generous u are.

mimiaifeng

回复 6# dkishore1

价格接受者公司应该面对弹性需求曲线吧？？完全竞争市场。

mimiaifeng

回复 6# dkishore1


    价格接受者面对的是完全弹性曲线。所以答案C是错的。要选A. 没问题了。题目答案是正确的。