Which statement is true?
A. American industry is very competitive.
B. There is no competition in American industry.
C. In order to have competition you need to have many firms in an industry.
D. The electrical and natural gas industries are good examples of competition at work.
C. In order to have competition you need to have many firms in an industry.
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One of the reasons why firms pollute air and water is that
a. air and water are often not priced. b. managers desire to pollute. c. air and water have no value to society. d. managers are profit maximizers.
There are currently 1,000 firms in a competitive industry. Minimum long-run average cost is $80 and price $100 . Explain what will happen to price, profit, and the number of firms in this industry over time
Compared to monopoly, the market results with monopolistic competition are usually expected to be:
A. worse because consumers get fewer choices. B. worse because consumers pay a higher price. C. better because consumers pay a lower price. D. better because consumers get less output.
The line segment RS describes the region where
A. increases in output do not cause higher prices because of a large portion of unemployed resources.
B. prices and output increase together.
C. increases in prices do not generate any increase in output.
D. increases in prices cause decreases in output.