Econ 102 Exam 2 Questions and Correct Answers the Latest Update and Recommended Version
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Course
Econ 102
Institution
Econ 102
Which of the following is NOT true regarding perfectly competive markets?
A. It is difficult or impossible for a firm to enter and compete in the market.
B. All firms in the market are price takers.
C. Homogenous goods are sold by the firms.
D. The market contains many buyers and sellers.
→ ...
Econ 102 Exam 2 Questions and Correct
Answers the Latest Update and
Recommended Version
Which of the following is NOT true regarding perfectly competive markets?
A. It is difficult or impossible for a firm to enter and compete in the market.
B. All firms in the market are price takers.
C. Homogenous goods are sold by the firms.
D. The market contains many buyers and sellers.
→ It is difficult or impossible for a firm to enter and compete in the market.
Regarding perfect competition, what does it mean when the goods sold by the firms in a
market are homogeneous?
A
Firms can produce the same good with different inputs and different costs.
B
The good sold by one firm is a perfect substitute of the good sold by another firm in the same
The clothing and attire retail market has seen an increased number of firms entering the
industry. Thus, there is a lot of competition in markets for many types of clothing. What is the
result of this high amount of competition?
A
Individual buyers and sellers cannot affect the market price.
B
Firms have a lot of flexibility in pricing their products.
C
One individual firm can determine the market price.
D
Some firms must necessarily leave since the prices will be too low.
→ Individual buyers and sellers cannot affect the market price.
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