tudent question

Business competition takes all of these forms except

Question content area bottom

Part 1

A.

innovating.

B.

cutting costs.

C.

building barriers to entry.

D.

tiebreakers.

E.

buying competitors.

Businesses with _____ pricing power have more _____ .

A.

lower; elastic supply

B.

lower; inelastic demand

C.

higher; elastic demand

D.

higher; inelastic demand

Business competition

Part 2

A.

is an active attempt to gain the market power of

perfect competition

.

B.

includes

erecting barriers to entry

.

C.

requires a licence.

D.

results in profits.

Economists use the term

long minus run

market equilibrium to describe a market where

Part 2

A.

quantity demanded is

less

than quantity supplied,

but economic losses or profits can lead to changes in supply

.

B.

quantity demanded equals quantity supplied,

economic profits are zero comma and there is no tendency for change

.

C.

quantity demanded equals quantity supplied,

but economic profits may be positive comma negative comma or zero

.

D.

quantity demanded is

greater

than quantity supplied,