Individual firm in purely competitive industry

In a purely competitive industry, the individual firm: (i) can raise the quantity demanded by lowering the price of its product. (ii) experiences substantial economies of scale. (iii) faces a completely inelastic demand curve. (iv) cannot influence the market price. (v) None of the above.

Can anybody suggest me the proper explanation for given problem regarding Economics generally?

View Complete Question

Related Questions in Microeconomics

Q : Marginal cost curve in market power

Above the minimum average variable cost curve, the marginal cost curve is not the supply curve of a monopoly since, unlike purely competitive firms, firms along with market power: (w)

Q : Positively-sloped supply curve

A straight-line, which positively-sloped supply curve which starts from the quantity axis is: (w) elastic for all prices and quantities. (x) inelastic for all prices and quantities. (y) unitarily elastic for all prices and quantities. (z) a sign that

Q : Concentration ratio explain the concept

explain the concept of a concentration ratio. is the concentration ratio in a monoplistically competitive industry likely to be higher than for a perfectly competitive industry?

Q : Prices decrement in price elasticity of

When animal rights activists persuade several fur coat buyers to switch to micro-fiber jackets as well as pelt prices decrease from $150 to $50 each, resultant in the baby seal harvest decreasing from 18,000 to 6,000 yearly, in that case the price elasticity

Q : Monopolies over brand name products of

Several firms have monopolies over brand name products, although face competition from: (w) international cartels. (x) oligopolistic rivals. (y) producers of close substitutes for their products. (z) intra-firm rivalry.

Q : Competitive market Select the right

Select the right answer of the question. A competitive market will: A) achieve an equilibrium price. B) produce shortages. C) produce surpluses. D) create disorder.

Q : Fundamental Normative Economics The

The fundamental economic question for that answers are most likely to be different greatly across the populace and be most heavily based upon value judgments is: (1) what goods will society produce? (2) how will resources be used to yield the goods so

Q : Shut down point of profit maximizing

A profit maximizing competitive firm will shut down within the short run when: (w) prices do not cover average total costs. (x) this loses money on each unit of output. (y) price falls below the minimum of its AVC curve. (z) fixed costs exceed margina

Q : Short-run market supply curve of a

Short-run market supply curve of a competitive industry is derived by summing all the firms’: (1) average cost curves vertically. (2) short-run supply curves horizontally. (3) production capacities along with the resources available. (4) individ

Q : Buyers and sellers as in price-takers

Price-takers comprise buyers or sellers who are not capable to: (w) resist monopolistic exploitation. (x) influence the prevailing market price. (y) adjust the amounts they buy or sell. (z) make short-run economic profits.

Discover Q & A

Leading Solution Library

Avail More Than 1427788 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1924110
Asked

3,689

Active Tutors

1427788

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment