Home

What is the correct answer?

4

In a perfectly competitive market, suppliers must know:

A. The incomes of consumers

B. The price of the good

C. What other commodities households could substitute for the good

D. Consumers expectations of the future

Correct Answer :

B. The price of the good


Under perfect competition, suppliers must know the price of the good, but need not to know the characteristics of demanders.}

Related Questions

Given a U shaped average cost curve, the relationship between average… In case of economic bads, an IC can be : With elasticity of demand, the: If two goods are perfect substitutes then IC will be: In centralized cartel, the firms are like: When total revenues equal to total opportunity cost then the firm will… In collusive olligopoly, the firms may make: Contraction in demand occurs when: When with a change in price the total outlay (expenditures) on a commodity… In 1890, Principles of Economics was written by: Utility is: If in the long run, output increases in the same proportion as increase… In short run: In case of monopoly: Profits of a firm will be calculated taking into account the units produced… Under conditions of perfect competition, price in the long-run is equal… In the modern theory of costs, the level of production which the firm… The Law of Proportionality is another name of: In monopolistic competition, the firm take advantage due to customers: The marshallian demand curve includes: According to marginalistic rule, the profit maximization hypothesis requires: The word ECONOMICS is derived from the Greek terms meanings: Who first used the term Quasi-Rent? The products, under monopolistic competition are differentiated, yet they… Normal profits are considered as: Identify the author of The Social Framework: If the commodity is inferior then: The main contribution of Prof. R.G.D.Allen is in the field of: Indifference curve approach (ordinal approach) is superior to utility… Loanable funds theory of Interest was developed by: