Question

All of the following are characteristics of perfect competition EXCEPT homogenous products. each firm is a...

All of the following are characteristics of perfect competition EXCEPT homogenous products. each firm is a price taker. product differentiation. lack of barriers to entry or exit. many buyers and sellers.

Homework Answers

Answer #1

The answer is product differentiation

All of the following are characteristics of perfect competition EXCEPT product differentiation

Most firms in imperfectly competitive market struc­tures sell differentiated products. In such industries, the firm itself must decide on the characteristics of the products it will sell

A market is said to be perfectly competitive when all firms act as price-takers — when they can sell as such as they like at the going price but nothing at a higher price. This is so because every firm is so small a part of the market that it can exert no influence on market price by selling a little more or little less of its product

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
21. A competitive market has all of the following characteristics except a. The buyers and sellers...
21. A competitive market has all of the following characteristics except a. The buyers and sellers are price makers b. Firms can freely enter and exit the market c. There are many buyers and sellers in the market d. Goods offered by the sellers are very similar 23. The firm shuts down if the revenue it would earn from producing is less than its variable costs of production a. true b. false 26. In the long run, the competitive firm...
1. Which of the following is not an assumption of perfect competition? a. Full information b....
1. Which of the following is not an assumption of perfect competition? a. Full information b. Firms are price makers c. Free entry and exit d. Homogeneous products e. Large number of buyers and sellers . 2. The demand curve of a firm in perfect competition is a. Vertical b. Upward slopping c. Horizontal d. Downward slopping . 3. Marginal revenue curve of a perfectly competitive firm is   a. Not Possible b. Same as the demand curve c. The slope...
40. Which of the following is a typical example of monopolistic competition? a.a chain restaurant b.an...
40. Which of the following is a typical example of monopolistic competition? a.a chain restaurant b.an apple orchard c.a wheat farm d.an electricity company 41.What are the three basic characteristics of monopolistic competition? a.product differentiation; many sellers; free entry b.product differentiation; few sellers; difficult entry c.identical product; few sellers; difficult entry d.identical product; few sellers; free entry 42.If total revenue is less than total costs at q*, the firm is ______. a.making zero economic profits b.making economic profits c.earning a...
The main difference between perfect competition and monopolistic competition is the number of sellers in the...
The main difference between perfect competition and monopolistic competition is the number of sellers in the market. the ease of exit from the market. the difference in the firm's profits in the long run. the degree of product differentiation. Mutual interdependence occurs when all firms in an industry are affected by the same macro economic conditions, such as a recession, inflation, interest rates, exchange rates, etc. the actions of firms are independent of each other. the actions of one firm...
Monopolistic competition characterizes an industry in which many firms offer products or services that are similar,...
Monopolistic competition characterizes an industry in which many firms offer products or services that are similar, but not perfect substitutes. Barriers to entry and exit are low, and the decisions of any one firm do not directly affect those of its competitors. So why does a firm in monopolistic competition make zero economic profit rather than an economic profit in the long run?
Which type of market environment (perfect competition, monopolistic competition, oligopoly, or monopoly) is each description below...
Which type of market environment (perfect competition, monopolistic competition, oligopoly, or monopoly) is each description below characterizing?             The industry is characterized by interdependent behavior                         _________________________________________________________             The several firms in the industry each produce a slightly differentiated product                         _________________________________________________________ The industry is made up of a single seller                         _________________________________________________________             The industry has a very large number of very small firms, each producing an identical product                         _________________________________________________________             The industry is made up of a...
If MC = MR, then a perfectly competitive firm is: Question 1 options: a) maximizing profit....
If MC = MR, then a perfectly competitive firm is: Question 1 options: a) maximizing profit. b) making a normal rate of profit. c) making economic losses. d) making economic profits. In which market structure is interdependent decision making most likely to occur among the firms? Question 2 options: a) perfect competition b) oligopoly c) monopolistic competition d) monopoly    The perfectly competitive market structure assumes all of these EXCEPT: Question 4 options: a) ease of entry and exit. b)...
Which of the following is true? Question 19 options: Under Perfect Competition and monopoly firms are...
Which of the following is true? Question 19 options: Under Perfect Competition and monopoly firms are "price makers". Under Perfect Competition firms are "price makers". Under monopoly, the firm is a "price taker" Under Perfect Competition and monopoly, firms are "price takers". Under Perfect Competition firms are "price takers". Under monopoly, the firm is a "price maker"
For each of the following characteristics, state whether they describe a company with perfect competition, one...
For each of the following characteristics, state whether they describe a company with perfect competition, one with monopolistic competition, both, or neither. 1. Sell a differentiated product from your competitors. 2. Have a marginal revenue less than the price. 3. Obtain long-term financial benefits. 4. Produce at the minimum of the long-term average total cost. 5. Match marginal revenue to marginal cost. 6. Set a price higher than marginal cost.
QUESTION 7 Which of the following is NOT an assumption of perfect competition:     a.   There...
QUESTION 7 Which of the following is NOT an assumption of perfect competition:     a.   There are no barriers to entry.     b.   All firms have access to the same technology and input factors.     c.   All firms pay the same price for input factors (and if quantity discounts apply, all firms buying the same input quantity face the same price).     d.   Firms try to push competitors out of the market by setting the price of the product they...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT