Question

Which of these is not true of perfectly competitive markets?

		There must be many buyers and sellers
		Firms must produce a standardised product
		Firms are able to choose the price they charge
		The market must allow free entry and exit from the industry Which of these is not true of perfectly competitive markets? There must be many buyers and sellers Firms must produce a standardised product Firms are able to choose the price they charge The market must allow free entry and exit from the industry At the current level of output, the market price for sandwiches is $5, while your average total cost foreach sandwich is above that. Do we know anything about your current profit? Your profit is positive. Your profit is zero. Your profit is negative. We do not know anything about your current profit At the current level of output, the market price for sandwiches is $5, while your average total cost foreach sandwich is $7. Do we know anything about your current profit? Your profit is positive. Your profit is zero. Your profit is negative. We do not know anything about your current profit. Which of the following is not provided for by the Fair-Trading Act: carbon emissions corrective statements injunctions damages .

Answer 1

Which of these is not true of perfectly competitive markets?

		There must be many buyers and sellers It's true because perfectly competitive markets do have many buyers and many sellers
		Firms must produce a standardised product It's also true because perfectly competitive markets sell only homogeneous products
		Firms are able to choose the price they charge This is our choice. It's not true becasue firms are PRICE TAKERS and not price makers in the perfectly competitive market
		The market must allow free entry and exit from the industry This is also true being a necessary feature of perfectly competitive market. Which of these is not true of perfectly competitive markets? There must be many buyers and sellers  It's true because perfectly competitive markets do have many buyers and many sellers Firms must produce a standardised product  It's also true because perfectly competitive markets sell only homogeneous products Firms are able to choose the price they charge This is our choice. It's not true becasue firms are PRICE TAKERS and not price makers in the perfectly competitive market The market must allow free entry and exit from the industry This is also true being a necessary feature of perfectly competitive market. At the current level of output, the market price for sandwiches is $5, while your average total cost foreach sandwich is above that. Do we know anything about your current profit? Your profit is positive. Not possible. How can profit be positive when Average cost > Average revenue of $ 5 Your profit is zero. This is also not possible. Profit is zero only when Average cost = Average revenue Your profit is negative. This is our choice. When Average cost > Average revenue, the profits will be negative only. We do not know anything about your current profit no, we have enough idea about current profit as cited in the preceding point. At the current level of output, the market price for sandwiches is $5, while your average total cost foreach sandwich is $7. Do we know anything about your current profit? Your profit is positive. Not possible. How can profit be positive when Average cost of $ 7 > Average revenue of $ 5 Your profit is zero. This is also not possible. Profit is zero only when Average cost = Average revenue Your profit is negative. This is our choice. When Average cost > Average revenue, the profits will be negative only. In this case the producer incurs a loss of $2 on every sandwitch sold. We do not know anything about your current profit. no, we have enough idea about current profit as cited in the preceding point. Which of the following is not provided for by the Fair-Trading Act: carbon emissions This is our choice. Fair Trading Act is all about protecting consumers' rights. It does not talk about environmental concerns. corrective statements Fair Trading Act is all about protecting consumers' rights. It definitely provides for corrective statements. injunctions: Fair Trading Act is all about protecting consumers' rights. It definitely provides for 'dos' and 'don'ts' for consumers as well as for sellers. damages Fair Trading Act is all about protecting consumers' rights. It definitely provides for the damages in favor of consumers if they are misled or mis-represented by the sellers.