Which of the following statements about a firm which is a price taker is false?
The firm will sell its product at the going market price
The demand curve faced by the firm is downward sloping
The demand curve faced by the firm is horizontal even though the market demand curve is downward sloping
The firm would sell nothing if it set a higher price than the market price
Market of gold and silver is _________ market.
Short Period
Long Period
Very long Period
International
Which of the following statements about price taker is false?
They include monopolistic competitors and monopolists
They can always raise their prices and still retain some customers
They may set different prices in the short run and in the long run
We do not analyse them using diagrams with supply and demand curve
In a perfectly competitive market ________ price of a commodity prevails.
Different
Uniform
Very high
Very low
In ________ market there are two sellers of the commodity.
Perfect Competition
Monopoly
Duopoly
Oligopoly
Classifying market as open market and black market is based upon
Competition
Time Period
Legality
Area
Which of the following statement about price leadership is false?
Price leadership is a form of tacit collusion
With dominant price leadership the leader in an industry is the biggest firm
With barometric price leadership the leader may change even if the relative size of each firm stays the same
Price leadership breaks down if input prices or demand conditions change
Which of the following statements is the correct definition of market failure?
It means that a market economy will fail to secure economic efficiency
It means that a market economy will fail to secure Pareto - efficiency
It means that a market economy will fail to secure productive efficiency
It means that a market economy will fail to secure technical efficiency
Fresh vegetable market is _________ market.
Very short Period
When would a perfectly competitive industry have a long run supply curve that slopes downwards?
If the industry has constant costs
If the industry has decreasing costs
If the industry has increasing costs
Never
