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Questions and Answers
In a perfectly competitive market, how do individual firms influence the market price?
In a perfectly competitive market, how do individual firms influence the market price?
- By setting their own prices independently
- By collaborating with other firms to set a common price
- By accepting the market price as given (correct)
- By having a significant influence on the market price
Which factor determines the quantity of a good or service that consumers are willing and able to buy at a given price?
Which factor determines the quantity of a good or service that consumers are willing and able to buy at a given price?
- Forms of market competition
- Market competition
- Demand (correct)
- Supply
What happens to the equilibrium price and quantity in a market if there is an increase in demand and no change in supply?
What happens to the equilibrium price and quantity in a market if there is an increase in demand and no change in supply?
- Equilibrium price increases and quantity decreases
- Equilibrium price and quantity both increase (correct)
- Equilibrium price and quantity both decrease
- Equilibrium price decreases and quantity increases
In a perfectly competitive market, what is the characteristic of the products sold by different firms?
In a perfectly competitive market, what is the characteristic of the products sold by different firms?
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Which form of market competition is characterized by a small number of large firms dominating the market and having the ability to influence prices?
Which form of market competition is characterized by a small number of large firms dominating the market and having the ability to influence prices?
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What effect does an increase in supply have on the equilibrium price and quantity in a market?
What effect does an increase in supply have on the equilibrium price and quantity in a market?
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