Question

What type of industry produces a homogenous or standardized product?

a. perfect competition

b. monopolistic competition

c. oligopoly

d. monopoly What type of industry has NO control over the price it can charge for its product? a. perfect competition b. monopolistic competition c. oligopoly d. monopoly Which of the following is at the opposite end of the spectrum from perfect competition? a. imperfect competition b. monopolistic competition c. oligopoly d. monopoly Which of the four market structures includes the pop industry, with Coke and Pepsi being the dominant companies? a. perfect competition b. monopolistic competition c. oligopoly d. monopoly What kind of demand curve will be faced by an individual firm being a price taker? a. a vertical demand curve b. a horizontal demand curve c. an upward-sloping demand curve d. a downward-sloping demand curve Suppose there is an increase in market demand. Which of the following statements is true regarding what would happen to the price an individual firm would face in a perfectly competitive market? a. The firm would face the same price but would produce more. b. The firm would be able to sell its output at a higher price. c. The firm would be able to sell its output at a lower price. d. The firm would face a lower price because the individual demand curve they face will become more elastic

Answer 1

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Question:

Answer:

What type of industry produces a homogenous or standardized product?

a. Perfect competition  

Perfect Competition: Its a that type of market in which there are large number of sellers that sell homogenous or standardized products without any restriction and producers and buyers have perfect knowledge of products and market.

Characteristics of perfect competition: These are the following characteristics of perfect competition:

1. Large number of buyers and sellers

2. homogenous or standardized product.

3. Free entry and exit.

4. Perfect knowledge of product and market

5. Free flow of product.

6. High elasticity of demand

What type of industry has NO control over the price it can charge for its product?

b. Monopolistic competition

Monopolistic competition: Its a that type of market in which there are number of sellers/producers sell their products and each product is slightly different in respect of brand image, quality, features etc.

Characteristics of monopolistic competition: These are the following characteristics of perfect competition:

1. Number of producers and buyers

2. Product differentiation (slightly)

3. Little entry and exit barriers.

4. High elasticity of demand

Which of the following is at the opposite end of the spectrum from perfect competition?

d. Monopoly.

Monopoly is  a that type of market in which there is single producers and have no entry and exit. Monopoly firm is the price makers. Other side perfect competition is a that type of market in which there are large number of sellers that sell homogenous or standardized products without any restriction and producers and buyers have perfect knowledge of products and market.

Which of the four market structures includes the pop industry, with Coke and Pepsi being the dominant companies?

c. Oligopoly

Its a that type of market in which there are few number of producers and large enough to influence the industry. There are barrier to entry and exit.

What kind of demand curve will be faced by an individual firm being a price taker?

d. A downward-sloping demand curve

In perfect competitive marker the producers price takers and do not affect or influence the market. Demand is highly price elastic. If any firms increase its price buyers buy the product from competitors.

Suppose there is an increase in market demand. Which of the following statements is true regarding what would happen to the price an individual firm would face in a perfectly competitive market?

b. The firm would be able to sell its output at a higher price.

If there is an increase in market demand. then The firm would be able to sell its output at a higher price.

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