1) What describes the competitive environment in the market for any good or serv

Question

1) What describes the competitive environment in the market for any good or service? market structure OR market power OR market price

2) Real or perceived differences in the quality of goods and services offered to consumers leads to product differentation. TRUE OR FALSE

3) "In the long run, competitive firms can earn only a:" positive economic profit OR Zero Economic profit OR Negative Economic Profit

4) "In the vigorously competitive market, profit maximization occurs when P>MR=MC." TRUE OR FALSE

5) The study of how the allocation of economic resources affects the material well-being of consumers and producers is called: efficiency economics OR equity economics OR welfare economics

6) The deadweight loss is the loss in the total surplus due to competitive market distortion. TRUE OR FALSE

7) Market failure may result from either market power or: regulation OR deregulation OR externalities

8) The deadweight loss of taxation is the decline in social welfare due to monopoly. TRUE OR FALSE

9) "Which side of the market, supply or demand, that bears the burden of a tax on a good or service depends upon the relative supply and demand:" elasticities OR surpluses OR shortages

10) A price ceiling causes a shortage only if it is above the equilibrium price. TRUE OR FALSE

Explanation / Answer

1.

The answer is

A Market Structure

The market structure is the dynamic system in which your business competes. The state of the system as whole limits the flexibility of your business. World economic conditions, for example, might increase the prices of raw materials, forcing companies that supply your industry to charge more, raising your overhead costs. At the other end of the scale, local events, such as regional labor shortages or natural disasters, also affect the competitive environment. The market structure describes the competitive environment for any good or service in the market place

2.

Real or perceived differences in the quality of goods and services offered to consumers lead to product differentiation. TRUE

3.

"In the long run, competitive firms can earn only a Zero Economic Profit

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