In the economic world of production, there are either price makers or price takers. By price takers we mean that
a. firms buy goods as well as sell them, and when they buy goods at whatever price, they play the role of "takers"
b. firms take control of their own markets, charging whatever price they think the market will bear
c. firms take the market price as given
d. firms create the price and consumers either take it or leave it
e. the market takes whatever price the firms charge, which is how the downward-sloping demand curve is created
C
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A fiduciary monetary system is
A) fully backed by gold. B) dependent on barter for exchanges of goods and services. C) dependent on the public's faith to accept the currency. D) one which cannot have any inflation.
The labor demand curve is:
A) upward sloping. B) vertical. C) horizontal. D) downward sloping.
If the price of a complementary good decreases, demand for the original good will decrease
Indicate whether the statement is true or false
Positive economic profits in a perfectly competitive market imply that:
A) producers are earning more than their opportunity cost. B) existing firms are likely to leave the market. C) the cost of production is equalized across producers. D) government intervention is required to stabilize the market.