Boba, a Taiwanese tea drink, because boba is popular with students. The market for boba on the UCI campus is very competitive. If legislation is passed to restrict the entry of private firms into the boba market at the UCI campus, the Question 20 According to the accompanying figure, the longrun market supply curve would be a horizontal line:
1. A firm characterized as a price-taker:
a. has control over the price it pays, or receives,in the market.
b. sets the price for the market.
c. has no control over the price it pays, or receives,in the market.
d. is not a characteristic of a perfectly competitive market.
e. takes the price that is determined from the lowest price consumers are willing to pay for an item.
2. In competitive markets:
a. firms set the prices for their products with little concern for the consumer.
b. firms are considered to be price makers.
c. firms are at the mercy of market forces.
d. the individual firms are much stronger than the market forces are. e. the market forces set the quantity in the market but not the prices.
3. In competitive markets:
a. the products sold are different depending on the firm selling the product.
b. buyers can expect to find consistently low prices and wide availability of the good that they want.

1. Firms are price takers. They do not set the price for their goods and services. They accept the price set by market forces. Price is set where the demand curve intersects the supply curve.

2. There are no product differentiation. All sellers sell identical goods and services.

3. There are no barriers to entry or exit of firms in the industry.

4. Firms make zero economic profit in the long run.

5. There are many sellers and buyers.

I hope my answer helps you.