1 the following characteristics many buyers and sellers homo

1- the following characteristics: many buyers and sellers, homogeneous product, and perfect information defines a: Select one: a. none of the answers b. monopolistic c. a monopoly d. perfect competition

2- The following characteristics: many buyers and sellers, a differientiated product, and free entry and exit in a market, defines a Select one: a. oligopoly b. monopolistic competition c. none of the answers d. monopoly

4- The monopolist is in a position where they can choose the both the price of a commodity, in addition to choosing the quantity of the commodity that they would like to produce. Select one: True False

5- Limit pricing may be profitable if one or more of these conditions exist: Select one: a. learning curve effects b. incomplete information c. commitment mechanisms d. all the answers are correct

Solution

1. Ans: Perfect competition: In perfect competition there are large number of buyers and sellers and they will be selling homogenous products. The firms in the perfect competition are the price takers they cannot influence the market price because the products are perferct substitutes for each other.

2. Ans: Monopolistic competition. It is a market where there is many buyers and sellers. And the firms will be selling the differentiated products in the market. In the oligopoly market there are only a few sellers. And the monopoly is characterized by a single seller.

3. Ans: TRUE, the monopolist is the sole producer of the good or service in the market so the monopolist will be able to set the price and the quantity produced.

4. d. all the answers are correct, the limit pricing is used to deter the entry of new firms into the industry.