Im super confused and this is due in a few hours ahh.



1. a producer is said to possess no "economic power" if:



A. it is unable to drive its competitors out of business

B it is unable to enter an industry

C. it is unable to influence the price of its output

D. It can only change the price of its output by changing the amount of output it produces





2. If a firm's output is an insignificant part of the total industry output, then an increase in the amount of its output would:



A. cause the market price of its output to fall

B. cause the market price of its output to rise

C. would significantly shift the market supply curve

D. would insignificantly shift the market supply curve





"Competitive" conditions basically require that



A. all buyers and sellers are "price takers"

B. all buyers and sellers can freely enter and leave the market

C. both A and B

D. neither A or B





Adam smith described and economists later proved that markets operating under the conditions of "perfect competition" were able to achieve allocatively efficient results. this is the hallmark of capitalism and forms the basis of which ideology?



A. conservative

B liberal

C. Radical

D. Andersonian