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average revenue, marginal revenue, and total revenue divided by output
For a purely competitive seller, price equals:
down sloping, perfectly elastic
The demand curve in a purely competitive industry is ______, while the demand curve to a single firm in that industry is _______.
can sell as much output as it chooses at the existing price
a perfectly elastic demand curve implies that the firm
producing less output than allocative efficiency requires
a firm is producing an output such that the benefit from one more unit is more than the cost of producing that additional unit. This means the firm is
there is no tendency for the firm's industry to expand or contract
assume a purely competitive firm is maximizing profit at some output at which long-run average total cost is at a minimum then:
higher resource prices which occur as the industry expands
an increasing-cost industry is the result of:
of unimpeded entry to the industry
a purely competitive firm is precluded from making economic profit in the long run because:
those markets which are not purely competitive
economists uses the term imperfect competition to describe
in which of the following industry structures is the entry of new firms the most difficult
an industry comprised of a very large number of sellers producing a standardized product is known as
the demand schedule or curve confronted by the individual purely competitive firm is
each seller supplies a negligible fraction of total supply
price is constant or given to the individual firm selling in a purely competitive market because
economies of scale are large relative to market demand
a monopoly is most likely to emerge and be sustained when
they are all barriers to entry
what do economies of scale, the ownership of essential raw materials, and patents have in common?
marginal revenue is less than price
which is true with respect to the demand data confronting a monopolist
barriers to entry are either weak or nonexistant
monopolistic competition resembles pure competition because
advertising, product promotion, and changes in the real or perceived characteristics of a product
nonprice competition refers to
consumers have a number of variations of the product from which to choose
the economic inefficiencies of monopolistic competition may be offset by the fact that
a small number of firms produce a large proportiotn of industry output
the mutual interdependence that characterizes oligopoly arises because
pure monopoly, oligopoly, and monopolistic competition
in which of the following market models do demand and marginal revenue diverge
an abrupt change in price elasticity occurs
a kink may exist in an oligopolist's demand curve because
may understate the degree of monopoly
if a product such as cement or bricks is costly to ship and, therefore, markets are very localized, the national concentration ratio for that indsutry
assume six firms comprising an industry have market shares of 30, 30, 10, 10, 10, and 10 percent. The Herfindahl Index for this industry is
a pure monopoly
if the firms in an oligopolistic industry can establish an effective cartel, the resulting output and price will approximate those of
neither productive efficiency nor allocative efficiency
suppose that a particular industry has a four-firm concentration ratio of 85 and a Herfindahl Index of 3,000. Most likely this industry would achieve
under which of the following market structures will the long-run equilibrium price be equal to marginal cost?
an industry comprised of 40 firms, none of which has more than 3 percent of the total market for a differentiated product is an example of
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