Which of the following products/markets is most consistent with the perfect competition model? Apple iPhones a bustling farmers' market Kellogg's Frosted Flakes electric utilities automobiles 2 Adam Smith’s “invisible hand” refers to The mechanism that moves market price and quantity to equilibrium The natural tendency of markets to avoid monopolies and ensure competition The market’s incentive to lower price in order to increase quantity sold The lack of government role in the free market due to the market’s ability to self-regulate The tendency of firm’s to seek to merge in order to realize synergies and market dominance 3 A company facing inelastic demand for a product sees an increase in its costs after a worker strike forces a wage increase. What is likely to happen to the price and quantity sold of that product? Price will fall slightly while quantity will rise a lot Price will rise slightly while quantity will fall a lot Price will rise slightly and quantity will fall slightly Price will rise a lot while quantity will fall slightly Price will rise a lot while quantity will fall a lot
Which of the following products/markets is most consistent with the
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Apple iPhones |
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a bustling farmers' market |
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Kellogg's Frosted Flakes |
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electric utilities |
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automobiles |
2
Adam Smith’s “invisible hand” refers to
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The mechanism that moves market |
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The natural tendency of markets to avoid |
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The market’s incentive to lower price in order to increase quantity sold
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The lack of government role in the free market due to the market’s ability to self-regulate
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The tendency of firm’s to seek to merge in order to realize synergies and market dominance |
3
A company facing
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Price will fall slightly while quantity will rise a lot
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Price will rise slightly while quantity will fall a lot
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Price will rise slightly and quantity will fall slightly
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Price will rise a lot while quantity will fall slightly
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Price will rise a lot while quantity will fall a lot |
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