In a perfectly competitive market, there areSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.amany buyers and many sellers who can each significantly affect the price of the product.bmany buyers and sellers, and no single participant can significantly affect the price of product.conly a few buyers or sellers who can each significantly affect the price of the product.dmany buyers but only a few sellers, and a single seller can significantly affect the price of the product.

When price is below the equilibrium level in a competitive market, the price will be driven upward due toSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aexcess supply.bgovernment intervention.ccompetition among suppliers.dexcess demand.etechnical inefficiency.

As discussed in class, “predatory pricing” refers to the act ofSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.asetting a high price for your product (P greater than MC) as a result of collusion with your potential competitorsbcharging different prices to different customers depending on how much they’re willing to payccharging a very low price (P below AVC) in hopes of driving your competitors out of business so that you can later charge a high monopoly priceddisguising part of the price from the customer (e.g., by using fine-print to add hidden costs to the consumer)

What most affects a buyer’s perception of a price

Price discrimination occurs whenSelected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aprice equals average variable costbprice exceeds marginal costcprice exceeds average costda firm charges different customers different prices, where these differences are based on cost differencesea firm charges different customers different prices, and the differences are not explained by cost factors

An increase in supply will do which of the following in a market with an effective price ceiling?Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer.aincrease the quantity exchanged in the marketbdecrease the quantity exchanged in the marketcincrease the price