Production Functions and Cost Minimization

A low concentration ratio indicates lesser competition in an industry.

Pure competition is characterized by a single firm dominating the market.

In a perfectly competitive market, sellers are considered price takers.

Homogeneous products in pure competition are seen as unique by buyers.

Free entry and exit into a market is a characteristic of perfect competition.

In a perfect competition scenario, every buyer and seller has complete information to make decisions.

A huge number of firms in a market allows individual firms to significantly influence market prices.

A market situation with only one buyer is known as a monopsony.

Low transaction costs are a property associated with perfect competition.

Collusive bidding is a tactic commonly used by cartels to promote competition.

The standard of living in a nation is unaffected by the benefits of information technology.

Oligopsony occurs when there is a large number of buyers in the market.

In the long run, firms can only adjust their labor inputs and not capital or technology.

Price fixing is considered a legal practice in most regions.

A monopoly can exist in an industry with multiple sellers offering similar products.

The law of diminishing marginal returns states that adding more of one factor of production leads to smaller increases in output after a certain point.

Improving growth prospects and employment potentials is a recognized benefit of information technology for nations.

Monopolistic markets are characterized by high competition and low barriers to entry.

Customer heterogeneity refers to the uniformity of customer preferences across different markets.

The first stage of production is characterized by negative returns.

Public utilities are an example of a monopolistic industry.

In the diminishing returns stage, producers experience an increase in output as they add more units of input.

Cartels benefit consumers by ensuring lower prices and increased transparency.

The Philippine Competition Act aims to promote unfair competition in the marketplace.

Monopolistic competition involves many small firms selling identical products.

Total cost is the sum of total variable cost and total fixed cost.

In an oligopoly, the actions of one firm can significantly impact others in the industry.

Average total cost is calculated by dividing total fixed cost by output.

Cartels are composed of independent businesses that cooperate to increase competition.

The marginal cost reflects the cost of producing an additional unit of product.

The concentration ratio measures the relative size of firms in an industry compared to their competitors.

The monopolist is considered a price taker in the market.

In a competitive market, firms are likely to be price makers.

Perfect competition requires firms to sell highly differentiated products.

Monopolistic competition features many firms selling slightly differentiated products.

Limited competition and high barriers to entry characterize monopolistic markets.

A natural monopoly arises when multiple firms can produce at lower costs.

The demand curve for an individual firm in a competitive market is vertical.

Public utilities are examples of monopolies that have unique production rights.

Firms in monopolistic competition do not pay attention to their competitors' prices.

A geographic monopoly occurs when multiple firms control a market within a specific region.

A technological monopoly can exist when a company holds exclusive rights to a production process or technology.

Legal monopolies are established solely through market competition.

In a monopsony, the seller has more control over the pricing of goods due to the presence of a single buyer.

An oligopsony consists of a large number of buyers and only a few sellers.

In an oligopsony, sellers can negotiate better prices due to their limited number.

Monopsonists often experience higher prices from wholesalers compared to competitive markets.

Buyers in an oligopsony can dictate various aspects of products including quality and quantity.