Q4. Which of the followings is an assumption for a perfectly competitive firm ?a) Product quality is indistinguishableb) High barriers to entry & exitc) Demand curve for a P.C. Firm is verticald) Price that prevails in the market> Marginal costQ5. The deadweight loss of monopoly emerges becausea) This area cannot be utilized by consumersc) Price charged by monopolist firm = Marginal cost d) This area cannot be utilized asmonopoly profit or consumer surplusb) Monopoly produces large quantityQ6. Which of the followings is a reason for the emergence of monopoly?a) Exclusive ownership of resources needed to produce the good by monopoly firmb) There are no barriers to entry and exit.c) High customs dutyd) Higher corporate taxes

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Q4. Which of the followings is an assumption for a perfectly competitive firm ? a) Product quality is indistinguishable c) Demand curve for a P.C. Firm is vertical b) High barriers to entry & exit d) Price that prevails in the market> Marginal cost

Q4. Which of the followings is an assumption for a perfectly competitive firm ? a) Product quality is indistinguishable c) Demand curve for a P.C. Firm is vertical b) High barriers to entry & exit d) Price that prevails in the market> Marginal cost

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Q4. Which of the followings is an assumption for a perfectly competitive firm ?
a) Product quality is indistinguishable
b) High barriers to entry & exit
c) Demand curve for a P.C. Firm is vertical
d) Price that prevails in the market> Marginal cost
Q5. The deadweight loss of monopoly emerges because
a) This area cannot be utilized by consumers
c) Price charged by monopolist firm = Marginal cost d) This area cannot be utilized as
monopoly profit or consumer surplus
b) Monopoly produces large quantity
Q6. Which of the followings is a reason for the emergence of monopoly?
a) Exclusive ownership of resources needed to produce the good by monopoly firm
b) There are no barriers to entry and exit.
c) High customs duty
d) Higher corporate taxes

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