Asked by
Alexis Crider
on Nov 27, 2024
Verified
Which of the following is not a necessary characteristic of a purely competitive industry?
A) The industry or market demand is highly elastic.
B) Firms can easily enter or leave the industry.
C) There are so many small firms that no one firm can influence the market price.
D) Consumers see no difference between the product of one firm and that of another.
Market Demand
The total demand for a product or service within a market, summing up the individual demands of all potential buyers.
Purely Competitive Industry
An industry characterized by many buyers and sellers, free entry and exit, and a product that is homogeneous, leading to the establishments of a market price for all participants.
Industry Elastic
The responsiveness of the quantity demanded or supplied of goods or services in an industry to changes in price.
- Identify the variations in market structures with respect to the entry barriers for new enterprises.
- Identify the principle of reciprocal reliance and its impact on price regulation across various market structures.
Verified Answer
ZA
Learning Objectives
- Identify the variations in market structures with respect to the entry barriers for new enterprises.
- Identify the principle of reciprocal reliance and its impact on price regulation across various market structures.