xWhich of the following statements are true of pure competition? Choose one or more: A. Firms...

xWhich of the following statements are true of pure competition?

Choose one or more:

A. Firms act as price takers.

B. The market demand curve and the demand curve facing a firm may be one and the same, at least at certain prices.

C. The demand curve facing a competitive firm consists of a horizontal line at any price equal to or below the market price.

D. There must be a very large number of sellers.

E. The demand curve facing a competitive firm consists of a horizontal line at any price equal to or above the market price.

Expert Solution

Answers: A:Firms act as price takers. D:There must be a very large number of sellers.

Answers: Pure competition refers to amarket situation where, there are large number of buyers and sellers selling homogeneous products. As sellers are selling homogeneous product, no individual seller can decide the selling price. Instead sellers of a pure competitive market sells goods at market determined price.

Wrong options:

B. The market demand curve and the demand curve facing a firm may be one and the same, at least at certain prices.

In the figure above DD (in panel b) is the market demand curve and SS (in panel a) is the market supply curve , which is downward sloped one. the market demand and supply curve intersect at the point corresponding to the price level P. The Price which individual firms is determined by the intersection of market demand and supply curve. Thus individual demand curve is horizontally sloped one. It shows indiviadual seller can sell any quantity at market determined price. Therefore market demand curve and individual demand curves have different slopes and their shapes are different.

C.The demand curve facing a competitive firm consists of a horizontal line at any price equal to or below the market price.

E.The demand curve facing a competitive firm consists of a horizontal line at any price equal to or above the market price.

The option C and E are wrong because individual firms demand curve is horizontally sloped corresponding to the market determined price. Individual firms only sells its commodity at market deremined price. Thus only equilibrium price matters here. price above or below equilibrium price has nothing to do with it.

Rahul Sunny answered 1 year ago

1.Which of the following statements about endpoint solution is true?(choose one or more) A. Similar to...

1.Which of the following statements about endpoint solution is true?(choose one or more) A. Similar to network based monitoring, encryption can be an obstacle for endpoint based monitorinng B. Endpoint agents can actively prevent attacks in realtime C. Network based monitoring can be simpler to deploy than endpoint monitoring because it can concentrate on a few network appliannces D. Endpoint agents can monitor application programs, users, as well as network activities 2. Which of the following windows events typically deserve...

Which one of the following statements about accredited investors is NOT true (choose one): a. If...

Which one of the following statements about accredited investors is NOT true (choose one): a. If start-ups want funding from angels or VCs, they must ensure these investors are accredited. b. The SEC does not officially certify accredited investors for each transaction. c. A start-up can get funding from its founders, even if they are not accredited. d. If start-ups issue an IPO, they must ensure that investors are accredited. e. Accredited investors must have enough personal financial strength to...

Which of the following statements are true? There may be more than one true statement. A....

Which of the following statements are true? There may be more than one true statement. A. Any linear combination of vectors can always be written in the form Ax for a suitable matrix A and vector x. B. Every matrix equation Ax=b corresponds to a vector equation with the same solution set. C. If the echelon form of the augmented matrix [A | b][A | b] has a leading entry in every row, then the equation Ax=b is inconsistent. D....

Which of the following statements is true? Note that more than one of the statements may...

Which of the following statements is true? Note that more than one of the statements may be true. a. Every relation that is in 3NF is in 2NF. b. A relation that is in 2NF, and that has a non-primary-key attribute that is functionally dependent on another non-primary-key attribute is not in 3NF. c. A relation that is in 2NF, and that has a non-primary-key attribute that is transitively functionally dependent on the primary key is not in 3NF. Which...

Which one of the following statements is NOT true about Angel investors and VCs (choose one)?...

Which one of the following statements is NOT true about Angel investors and VCs (choose one)? a. Both sets of investors consider factors such as management team, market size, business model, and sustainable competitive advantage b. Angels expect to get most of their returns from a few spectacular successes while VCs look for a higher percentage of successful companies c. VCs typically invest from funds they’ve raised while angels invest their own money d. VCs prefer investments with larger investment...

A) Which of the following statements are true? Note that there may be more than one...

A) Which of the following statements are true? Note that there may be more than one correct answer; select all that are true. As the p-value increases, the evidence against the null hypothesis also increases. In hypothesis testing, if the p-value is sufficiently small, then the null hypothesis can be rejected in favour of the alternate hypothesis. If the null hypothesis is true, then the p-value will always be greater than 0.1. If the null hypothesis is false, then the...

Which statements are true regarding protein transport into peroxisomes? Choose one or more: Like mitochondrial proteins,...

Which statements are true regarding protein transport into peroxisomes? Choose one or more: Like mitochondrial proteins, some peroxisomal proteins arrive via vesicles that bud from the ER. Like proteins transported into mitochondria, proteins can enter the peroxisome in a folded conformation. Like prospective nuclear proteins, some peroxisomal proteins are recognized by receptor proteins in the cytosol. Like proteins destined for the ER, nucleus, or mitochondria, peroxisomal proteins bear a distinct signal sequence. Like proteins transported into the nucleus, proteins must...

1. In pure competition: a. there is no supply since firms in the long run earn...

1. In pure competition: a. there is no supply since firms in the long run earn zero economic profits b. a firm's demand curve is represented by a vertical line c. a firm is a price-taker since the products of every firm are identical and consumers know this information d. none of the above 2. A firm in pure competition (and other industry structures) is expected to shut down (produce q = 0) in the short run when: a. price...

Which of the following statements are TRUE? Note that there may be more than one correct...

Which of the following statements are TRUE? Note that there may be more than one correct answer; select all that are true. There are countably infinite values of X in a continuous uniform distribution. For a continuous uniform distribution defined on the interval [a,b], P(X < a) and P(X > b) is undefined. The mean and the variance of a continuous uniform random variable are the same. In a continuous uniform distribution, the mean and the median are the same....

Which one ore more of the following statements is/are true of Java? a.LinkedList < T >...

Which one ore more of the following statements is/are true of Java? a.LinkedList < T > and ArrayList < T > are interfaces b.List < T > is a concrete class c.LinkedList < T > and ArrayList< T > are concrete classes d.List < T > is an interface Suppose we run these operations on a queue of characters: enqueue 'a' enqueue 'b' enqueue 'c' dequeue dequeue What remains in the queue after these operations complete? a. 'a' b. 'a',...

Question