ECON 4346 What describes the competitive environment in the market for any good or service

What describes the competitive environment in the market for any good or service?

		marketstructure
		marketpower
		marketprice

Real or perceived differences in the quality of goods and services offered to consumers leads to product differentation.

True

False

"In the long run, competitive firms can earn only a:"

		positive economicprofit
		zeroeconomicprofit
		negativeeconomicprofit

"In the vigorously competitive market, profit maximization occurs when P>MR=MC."

True

False

The study of how the allocation of economic resources affects the material well-being of consumers and producers is called:

		efficiencyeconomics
		equityeconomics
		welfareeconomics

The deadweight loss is the loss in the total surplus due to competitive market distortion.

True

False

Market failure may result from either market power or:

		regulation
		deregulation
		externalities

The deadweight loss of taxation is the decline in social welfare due to monopoly.

True

False

"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
		surpluses
		shortages

A price ceiling causes a shortage only if it is above the equilibrium price.

True

False