Which of the following is NOT a characteristic of a perfectly competitive industry?
A) There are large numbers of buyers and sellers.
B) The firms in the industry produce a homogeneous product.
C) Sellers have better information about the product than consumers.
D) Any firm can enter or leave the industry without serious impediments.
Answer: C
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The pre-1973 farm price support program resulted in a(n)
a. substantial increase in the number of farmers b. substantial increase in the number of farms c. excess demand for farm goods d. excess supply of farm goods e. major benefit to consumers of farm goods
In a competitive market free of government regulation,
a. price adjusts until quantity demanded is greater than quantity supplied. b. price adjusts until quantity demanded is less than quantity supplied. c. price adjusts until quantity demanded equals quantity supplied. d. supply adjusts to meet demand at every price.