Wk 4 - Apply Summative Assessment The Microeconomics of Product | All Answers are Correct

1. What are the likely reason(s) that the market for electricity is not perfectly competitive? Select all that apply. check all that apply  It is difficult to enter or exit the industry as a supplier.  Electricity is not a standardized (homogeneous) product.  There are few buyers in the market.  There are few sellers in the market. Producing electricity requires high start-up costs for power plants and power lines. This will prevent companies from entering the market. In addition, the government usually issues permits to sell electricity (and usually only to one company in a region). 2. A perfectly competitive producer is rev: 06_26_2018 Multiple Choice  both a "price maker" and a "price taker."  neither a "price maker" nor a "price taker."  a "price taker."  a "price maker." 3. The marginal revenue curve faced by a perfectly competitive firm rev: 06_26_2018 Multiple Choice  lies below the firm's demand curve.  is downward sloping, because price must be reduced to sell more output.  is horizontal at the market price.  has all of these characteristic