Question
Which of the following statements are true regarding the
Perfect Competition market structure? 1. All firms in a perfectly competitive market sell identical products. 2. Firms in a perfectly competitive market have control over prices. 3. There is free entry and exit in a perfectly competitive market. 4. In the long run, firms in a perfectly competitive market earn normal profits. Select the correct answer using the code below:Solution
• Statement 1 is correct as firms in a perfectly competitive market sell identical products. • Statement 2 is incorrect because firms in perfect competition are price takers and do not have control over the market price. • Statement 3 is correct because in perfect competition, there are no barriers to entry or exit, allowing firms to freely enter or leave the market. • Statement 4 is correct because in the long run, firms in perfect competition earn normal profits, as the entry of new firms drives economic profits to zero.
Which of the following is an example of a variable charge in a business?
Which Section of the IRDA Act 1999, specifies the Duties, Powers and Functions of the Authority?
What does IRDA mandate for surveyors handling losses above INR 20,000?
A demand made by the insured, or the insured’s beneficiary, for payment of the benefits is known as?
The first unit-linked insurance plan (ULIP) was launched by which of these countries?
What does the preamble of an insurance policy NOT typically include?
What is a coverage for bodily injury or property damage caused by an intoxicated person who was served liquor by the policyholder?
An environment where insurance is plentiful and sold at a lower cost, also known as a Buyer’s market is called?
What are physical hazards in underwriting?
The operative clause in an insurance policy is also known as:
