In pure competition:
a. the optimal price-output solution occurs at the point where marginal revenue is equal to price
b. a firm's demand curve is represented by a horizontal line
c. a firm is a price-taker since the products of every producer are perfect substitutes for the products of every other producer
d. a and b only
e. a, b, and c
e
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From 1993 to 2012, average real income for the bottom quintile of U.S. households
A) decreased by more than 10%. B) remained virtually unchanged. C) increased by about 5%. D) almost doubled.
Within a monopolistically competitive industry
A) firms can freely enter and exit and economic profits are zero in the long run. B) firms can freely enter and exit and economic profits are greater than zero in the long run. C) there are some barriers to entry and exit and economic profits are zero in the long run. D) there are some barriers to entry and exit and economic profits are greater than zero in the long run.
Autarky is a situation in which a country
A) only imports products. B) only exports products. C) does not trade with other countries. D) has no absolute advantage in any production.
Microfinance refers to:
A. Small-size stock markets with very limited capitalization B. A system of providing credit to small-business owners C. Bond markets for governments of small nations D. Deposits in small banks in developing nations