Answer:
1. True
2. False
Explanation:
A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
An example of perfect competition is the market for farm produce.
I hope my answer helps you
The correct answer is option B - COLLEGE PROFESSORS. The Academia is a brilliant source of free marketing data, and they are very knowledgeable and well-informed. However, the academia is often neglected because entrepreneurs usually ignore and/or overlook them
Answer:
B is the correct option.
Explanation:
In theory, the perfect market is the structure in which all the firms sell identical products,They all are price takers, the market share doesn't influence the prices, firms can enter or exit the market without cost and resources are perfectly mobile. No markets are in the sphere of the perfect competition model. so they are classified as imperfect. The imperfect and perfect market is the outcome of post-classical economic thought of the Cambridge tradition.
With the increase in the demand of the mutual funds, the quantity supplied of the mutual funds will also increase because of the increase in the rate of interest.
<u>Explanation:</u>
All in all, when the rate of interest is rising, it normally makes shared assets, and different ventures, less appealing. This is on the grounds that the expense of acquiring increments with an expansion in loan fee and people and organizations has less cash to place in their portfolio.
As a result of this increase in the cost of borrowing, the quantity supplied of the mutual funds increases in the market, thus increasing the supply in the financial market.
