Reference no: EM13839068
1. The terms price maker, price setter, and price searcher are all meant to imply the same thing, which is
a. firms operating in a perfectly competitive market have pricing power.
b. it is impossible for any firm to have pricing power.
c. a firm operating in any market but perfect competition that also determines the quantity it produces and the price at which it sells the products.
d. any firm can determine the price at which it sells a product, but no firm can determine the quantity it produces.
e. a price increase will likely drive every customer for the producer of this product to another product.
2. In monopoly,
a. the number of firms is large.
b. there is ease of entry into the market and exit from the market.
c. the product has many good substitutes.
d. economic profits are zero in the long run.
e. None of these choices.
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