Chapter 10
Which of the following is a reason why forms under pure competition would not find it gainful to advertise their product?
Firms produce a homogenous product
Which of the following statements applies to a purely competitive producer?
It will not advertise its product
Which of the following is true under conditions of pure competition?
No single firm can influence the market price by changing its production level
The demand schedule or curve confronted by the individual, purely competing firm is
Perfectly elastic
Which characteristic would be best associated with pure competition?
Price takers
Which of the following is a feature of a purely competitive market?
Products are standardized or homogenous
Which of the following is NOT a necessary characteristic of purely competing industry?
The industry or market demand is highly elastic
EAn industry comprising a very large number of sellers producing a standardized product known as a
Those markets that are not purely competitive
a purely competitive seller is
a "price taker"
Which of the following industries most closely approximates pure competition?
agriculture
In a purely competitive industry each firm
can easily enter or exit the industry
Which of the following is NOT a basic characteristic of pure competition?
considerable no price competition
Price is taken to be a "given" by an individual firm selling in a purely competitive market because
each seller supplies a negotiable fraction of the total market
Which of the following is NOT a basic market model?
free enterprise
Which of the following is NOT a characteristic of pure competition?
pricing strategies by firms
Which idea is inconsistent with pure competition?
product differentiation
In which market model are the conditions of entry into the market easiest?
pure competition
The market for agricultural products such as wheat or corn would best be describe by which market model?
pure competition
If a firm has at least some control over the price of its product, then the firm CANNOT be in which market model
pure competition (2)
An industry comprising a very large number of sellers producing a standardized product is known as
pure competiton (1)