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Economics Ch.7-1 Perfect Competition Flashcards | StudBud

Explore/Economics Ch.7-1 Perfect Competition

What indicates how much a market values the resources that went into a product?

What are start up costs?

Economics Ch.7-1 Perfect Competition

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Questions 8

Answers

1
What are start up costs?
cost of gasoline
fees new firms must pay before selling their first product
price of transporting goods
cost of choosing to enter a market
2
What indicates how much a market values the resources that went into a product?
the attitudes of sellers
prices consumers pay and revenue suppliers receive
how quickly the product sells out
how much producers pay for raw materials
3
What are barriers to entry? (choose two)
laziness
police
technology
high start-up costs
4
What is a commodity?
the price of transporting a good
a product that is the same no matter who produces it
a type of tax
a public good
5
Which of the following is not one of the conditions of perfect competition?
many buyers and sellers in the market
identical products
everyone profits the same
free market entrance and exit
6
Why must the market have free entry and exit?
so firms can leave if they can't make enough to run business
because Adam Smith said so
so buyers don't feel trapped
so the government can't control it
7
How does technology make it hard to enter a market?
job applications are online
need a high degree of tech experience to perform a job
other firms can see your social media history
machines take the place of laborers
8
What is imperfect competition?
buyers don’t pay sales tax
a market without judges
sellers use unfair practices
a market doesn’t meet requirements of perfect competition