Economics: The Basics 1st Edition by Mike Mandel

Exercise 4

Say whether each of the following statements is true or false.
a) If a seller is a price-taker, that means it always charges a high price.
b) Standardized products are difficult to compare.
c) Markets with one or two sellers are less likely to be perfectly competitive.
d) In perfect competition, marginal cost will be greater than the market price.
e) New entrants will come into a market as long as it looks profitable.
f) The need to get a law degree is a barrier to entry in the market for lawyers.
g) Businesses shut down because their revenues exceed their costs.
h) One role of advertising is to provide information about a product.
i) In monopolistic competition, a business can raise its price and still keep some customers.
j) Monopolists produce more than the equilibrium quantity in perfect competition.
k) Telephone service is no longer a natural monopoly.