ECONOMICS
DEMAND
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Bretton Woods conference gave birth to two international organizations-
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Theory of Absolute Advantage in international trade is given by Adam Smith’
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Pure and perfect competition is the same market structures.
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Mint par theory of exchange rate determination is applicable in countries under gold standard.
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Detailed explanation-1: -Yes. Perfect competition is the same as pure competition. Either term describes a model market with numerous buyers and sellers of identical products. Those two characteristics mean that no individual firm has any control over the prices they can charge.
Detailed explanation-2: -Perfect competition is a type of market where there are large number of buyers and sellers who deals in homogeneous product due to which no individual unit is able to influence the price of the product and the firms have to quote the price that prevails in the market.
Detailed explanation-3: -Perfect competition is a hypothetical market structure in which there are very many firms, each of which represents an infinitesimal share of the market. In a perfectly competitive market, if any firm is able to earn an economic profit, other firms will immediately enter the market, driving economic profit to zero.
Detailed explanation-4: -Answer and Explanation: The correct answer is b. The firm cannot affect the market price for its good. In a perfectly competitive market, a single firm cannot influence the market price.