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A. demand for butter increased causing price to rise, which attracted other firms to enter the<br />
market causing supply to increase, which caused the price to go back down<br />
B. demand for butter decreased causing price to rise, which attracted other firms to enter the<br />
market causing supply to increase, which caused the price to go back down<br />
C. demand for butter increased causing price to rise, which induced other firms to exit the<br />
market causing supply to decrease, which caused the price to go back down<br />
D. demand for butter increased causing price to rise, which attracted other firms to enter the<br />
market causing supply to decrease, which caused the price to go back down<br />
Question 11 of<br />
2.5/ 2.5 Points<br />
40<br />
Which of the following is NOT a characteristic of a perfectly competitive market?<br />
A. a small number of firms in a market<br />
B. selling a standardized product<br />
C. no barriers to entry<br />
D. an individual firm having no control over<br />
price<br />
Question 12 of<br />
0.0/ 2.5 Points<br />
40<br />
When a second firm enters a monopolist's market __________ .<br />
A. the former monopolist's average cost decreases as its output level<br />
decreases<br />
B. the demand curve the former monopolist faces shifts to the left<br />
C. the market price rises as the average cost increases<br />
D. none of the above<br />
Question 13 of<br />
2.5/ 2.5 Points
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