1. A firm in perfect competition faces the demand function P = $40. This implies that it: [More than 1correct option]can sell any quantity at $40 a unitcan sell some quantity at prices higher than $40Will have the incentive to "cut" the market and sell at less than $40Competes with other firms with the same price.2. Which of the following options best describe a perfect compitative market- [More than 1 correctoption]No barrier to entry or exit into the marketPrice is greater than marginal costFew buyers and sellers in the marketPositive economic profit in the short run.

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1. A firm in perfect competition faces the demand function P = $40. This implies that it: [More than 1 correct option] can sell any quantity at $40 a unit can sell some quantity at prices higher than $40 Will have the incentive to "cut" the market and sell at less than $40 Competes with other firms with the same price.

1. A firm in perfect competition faces the demand function P = $40. This implies that it: [More than 1 correct option] can sell any quantity at $40 a unit can sell some quantity at prices higher than $40 Will have the incentive to "cut" the market and sell at less than $40 Competes with other firms with the same price.

Microeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506893

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter10: Price-searcher Markets With Low Entry Barriers

Section: Chapter Questions

Problem 15CQ

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