Perfect competition is a market in which no buyer or seller has market power.
Answer the following statement true (T) or false (F)
True
A perfectly competitive firm, facing numerous rivals, has difficulty maintaining prices or profits.
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A movement along the consumption function shows the change in consumption expenditure as a result of a change in
A) disposable income. B) the interest rate. C) net taxes. D) the price level. E) saving.
Refer to Table 14-2. Suppose Wal-Mart and Target both advertise that they will match the lowest price offered by any competitor. What is the purpose of such a strategy?
A) to signal to each other to share the market equally B) to signal to each other that they will not hesitate to initiate a price war C) to signal to each other not to charge below the current low price D) to signal to each other that they intend to charge the high price