A competitive firm O Has the market power to compete effectively. O Confronts a downward-sloping firm demand curve. O Is large enough relative to the market to be taken into account by competitors. OIs a price taker.
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A competitive firm O Has the market power to compete effectively. O Confronts a downward-sloping firm demand curve. O Is large enough relative to the market to be taken into account by competitors. OIs a price taker.
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- The profit maximizing condition for a purely competitive firm is when. Price elasticity of demand is positive. Price average total costs O Price - average total costsQuestion-. If a pure monopolist can price discriminate by separating buyers into two or more groups: A. the marginal revenue curve will now shift to a position above the demand curve. B.marginal revenue will become less at each level of output than it would be without price discrimination. C. the firm will face multiple marginal revenue curves. E. the marginal revenue curve and the total revenue curve will now coincide I think the answer is C?What are the features of a perfectly competitive market? Give two examples of competitive markets. How could a firm in such a market move to a less competitive market?
- Whether the firm uses the market-based approach or the cost-based approach for pricing decisions, the market forces must be considered. True False1) Which of the following statements describes the force that drives the distribution of resources (goods and services, labor, and money) in a free-enterprise economy? A) Businesses are willing to supply more of a good or service at higher prices because the potential for profits is higher. B) Supply and demand curves intersect at the point where supply and demand are not equal. C) Changing the price of a product does not alter the supply curve. D) The price at which the number of products that businesses are willing to supply is inversely proportional to the amount of products that consumers are willing to buy at a specific point in time. E) Prices for goods and services vary according to the changes in supply and demand. 1)Investors who conduct industry analyses typically favor companies with strong market positions over companies with less secure market positions because firms with strong market positions tend to 1. be price leaders. II. benefit more from economies of scale. III. have better R&D programs. IV. have lower production costs. OA. II and IV only OB. I, II and IV only OC. I, II and III only OD. I, II, III and IV
- Which of the following statements is true? A In linear break-even analysis, the contribution margin is the difference between the selling price and the average fixed cost. B The Theory of the Business Firm assumes perfect market competition. This means it assumes that the selling price decreases as a firm's production rate increases. C In the Theory of the Business Firm, profits per period are maximized at the production rate at which marginal cost equals average cost. D In the Theory of the Business Firm, profits per period are maximized at the production rate at which average cost is minimized. E All four statements are false.Which of the following is NOT true about competitive dynamics? High market commonality and high resource similarity indicate that the threat is high O When a competitor strikes a new competitive action, you should always respond back as much as you can Tactical actions tend to be involving smaller resource commitments than strategic actions High market dependence suggests that there will be a competitive response from the competitorSuppose that the elasticity of demand at a given price level is E(p)=.8. What does that mean? Select both the correct answer to elastic, unit, or inelastic as well as what the company should do to increase revenue. Since 0Which of the following statement is correct about cost-benefit analysis? O A. Costs and benefits must be put into common units (such as dollars) if they are to be compared. O B. In general, if an action increases a firm's value by providing benefits with a value greater than any costs involved, then that action is not good for the firm's investors. C. In order for costs and benefits to be compared, they must typically be converted to common units but not converted to the same point in time. O D. A financial manager's decisions should provide benefits to the firm without incurring any costs. Click to select your answer.Which of the following statements regarding price elasticity is incorrect? a. A product with a perfectly inelastic demand would have the same demand even as prices change. b. A product with a perfectly inelastic demand would see demand change as prices change. c. When demand is price elastic, lower prices stimulate demand. d. When demand is price elastic, higher prices reduce demand.The hypothesis that market prices reflect all publicly-available information is called efficiency in the: Strong form. Semi-strong form. Weak form.SEE MORE QUESTIONS