Economic Concepts: Industry Profit and Homogeneous Product

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Which concept refers to the quantity of a good that is desired by buyers?

Quantity supplied

Quantity demanded

Demand (correct)

Supply

What does the term 'quantity demanded' specifically refer to?

Demand

Quantity demanded (correct)

Supply

Quantity supplied

What does the total quantity of a product or service that the marketplace can offer represent?

Supply (correct)

Quantity demanded

Quantity supplied

Demand

Which term defines the amount of a product/service that suppliers are willing to provide at a given price?

Supply Signup and view all the answers

What economic concept demonstrates the relationship between quantity sold and price?

Law of Demand Signup and view all the answers

Which principle states that as the price increases, the quantity demanded decreases?

Law of Demand Signup and view all the answers

What market structure is characterized by a single seller?

Monopoly Signup and view all the answers

In a monopsony market, the influence on market structure is due to:

Nature of buyers Signup and view all the answers

Which market structure is characterized by close substitutes and product differentiation?

Monopolistic competition Signup and view all the answers

What type of market structure involves two buyers acting jointly in the market?

Duopoly Signup and view all the answers

In which market structure are entry and exit conditions influenced by profitability or loss?

Perfect competition Signup and view all the answers

What type of market structure has products with no close substitutes?

Monopoly Signup and view all the answers

What happens when an industry earns excess profits?

New firms enter the industry Signup and view all the answers

Why can't a seller raise the price of a homogeneous product?

Customers will buy from other sellers at a lower price Signup and view all the answers

What does a perfectly elastic average revenue curve signify for a firm?

The firm has no control over the market price Signup and view all the answers

How do buyers and sellers interact in a market with absence of artificial restrictions?

Buyers and sellers have freedom to transact with any party Signup and view all the answers

What effect does the presence of perfect substitutes have on the sellers' products?

Makes buyers indifferent between sellers Signup and view all the answers

Why does the number of sellers being very large prevent any individual seller from influencing the price?

As there are many alternatives available for buyers Signup and view all the answers

What distinguishes firms under monopolistic competition?

Each firm produces a distinct product. Signup and view all the answers

What are considered as selling costs under monopolistic competition?

Expenses on salesman, allowances to sellers for window displays Signup and view all the answers

How can a firm in monopolistic competition increase sales and profits without reducing the price?

By changing product quality, packaging, etc. Signup and view all the answers

What is the term used by Chamberlin to describe firms producing closely related products?

Product groups Signup and view all the answers

What is the significant role acknowledged by the Philippine government regarding small and medium enterprises?

Important role in economic and social development Signup and view all the answers

What do SMEs encompass according to the text?

Small, medium, and micro enterprises Signup and view all the answers

In a monopoly market, what is the main characteristic of the product?

Low cross elasticity of demand with other products Signup and view all the answers

What does it mean when it is stated that 'a monopolist has full control on the supply of a product'?

The monopolist can manipulate the quantity supplied to influence prices Signup and view all the answers

What distinguishes a monopoly from perfect competition in terms of production costs?

Monopolies have higher production costs due to lack of competition Signup and view all the answers

Why do selling costs not arise in a perfectly competitive market?

Firms in perfect competition do not need to advertise or promote their products Signup and view all the answers

How does transport cost affect the price of a homogeneous commodity?

Transport cost can lead to different prices based on the place of supply Signup and view all the answers

What is a key feature distinguishing monopoly from perfect competition regarding the number of sellers?

Monopoly has one seller while perfect competition has several competing firms Signup and view all the answers

Economic Concepts: Industry Profit and Homogeneous Product

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Questions and Answers

Which concept refers to the quantity of a good that is desired by buyers?

What does the term 'quantity demanded' specifically refer to?

What does the total quantity of a product or service that the marketplace can offer represent?

Which term defines the amount of a product/service that suppliers are willing to provide at a given price?

What economic concept demonstrates the relationship between quantity sold and price?

Which principle states that as the price increases, the quantity demanded decreases?

What market structure is characterized by a single seller?

In a monopsony market, the influence on market structure is due to:

Which market structure is characterized by close substitutes and product differentiation?

What type of market structure involves two buyers acting jointly in the market?

In which market structure are entry and exit conditions influenced by profitability or loss?

What type of market structure has products with no close substitutes?

What happens when an industry earns excess profits?

Why can't a seller raise the price of a homogeneous product?

What does a perfectly elastic average revenue curve signify for a firm?

How do buyers and sellers interact in a market with absence of artificial restrictions?

What effect does the presence of perfect substitutes have on the sellers' products?

Why does the number of sellers being very large prevent any individual seller from influencing the price?

What distinguishes firms under monopolistic competition?

What are considered as selling costs under monopolistic competition?

How can a firm in monopolistic competition increase sales and profits without reducing the price?

What is the term used by Chamberlin to describe firms producing closely related products?

What is the significant role acknowledged by the Philippine government regarding small and medium enterprises?

What do SMEs encompass according to the text?

In a monopoly market, what is the main characteristic of the product?

What does it mean when it is stated that 'a monopolist has full control on the supply of a product'?

What distinguishes a monopoly from perfect competition in terms of production costs?

Why do selling costs not arise in a perfectly competitive market?

How does transport cost affect the price of a homogeneous commodity?

What is a key feature distinguishing monopoly from perfect competition regarding the number of sellers?

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