AGEC 2003 : Pop Quiz 8
Document Summary
Version a: in a free market economy, the market is centralized, true. *3)l-/ienre classifications of markets are the free market and comrnunism: pure -"ffip-etition is characterized by the production of a heterogeneous product. A pure monopoly is characterized by only a few firms in the industry. I liiire monopoly is characterized by the production of a homogeneous product. A pure monopolist faces a perfectly elistic demand curve. 10. tt. n f,io"n6iotist is tire only firm producing a particular product, and thus the firm"s supply curve is the market suppty curve. Because ofthis the firm is better situated to set the market orice. a - iqe: false. In tlrs+lsqqf a monopolist, there are measurable barriers to entry and exit. a a. f. t)e-: fatse. In a perfectly competitive market, firms must take the market price of a commodity and, thus, have no influence on the price per unit that the firm sells. a. tjue. l.
