Economics Study Set 4

Assume the market for organic produce sold at farmers' markets is perfectly competitive.All else equal,as more farmers choose to produce and sell organic produce at farmers' markets,what is likely to happen to the equilibrium price of the produce and profits of the organic farmers in the long run?

Assume the market for organically-grown produce is perfectly competitive.All else equal,as farmers find it less profitable to produce and sell organic produce in this market,

Which of the following is not a characteristic of a perfectly competitive market structure?

Which of the following is not a characteristic of a monopolistically competitive market structure?

Which of the following is a characteristic of an oligopolistic market structure?

Which of the following is a characteristic of a monopoly?

Perfect competition is characterized by all of the following except

A very large number of small sellers who sell identical products imply

Which of the following is the best example of a perfectly competitive industry?

The price of a seller's product in perfect competition is determined by

Both individual buyers and sellers in perfect competition

Both buyers and sellers are price takers in a perfectly competitive market because

Suppose the equilibrium price in a perfectly competitive industry is $15 and a firm in the industry charges $21.Which of the following will happen?

The demand curve for each seller's product in perfect competition is horizontal at the market price because

An individual seller in perfect competition will not sell at a price lower than the market price because

Jason,a high-school student,mows lawns for families in his neighborhood.The going rate is $12 for each lawn-mowing service.Jason would like to charge $20 because he believes he has more experience mowing lawns than the many other teenagers who also offer the same service.If the market for lawn mowing services is perfectly competitive,what would happen if Jason raised his price?

The demand curve for an individual seller's product in perfect competition is

In perfect competition

A perfectly competitive firm's horizontal demand curve implies that the firm does not have to lower its price to sell more output.

The market demand curve for a perfectly competitive industry is the horizontal summation of each individual firm's demand curve.