In a general equilibrium model
A) all markets but one clear.
B) there are no fluctuations.
C) all prices are exogenous.
D) all prices are endogenous.
D
You might also like to view...
Which of the following statements is correct?
A) A change in demand or supply can only be caused by a change in price. B) A simultaneous decrease in demand and increase in supply will result in an increase in equilibrium price and uncertain effect on quantity. C) If price is currently above equilibrium, market adjustments will result in a decrease in price and quantity supplied. D) An increase in supply invariably leads to a shortage in the affected market.
According to the U.S. Supreme Court's 1920 ruling on U.S. Steel,
a. all monopolies are illegal b. all oligopolies violate the Sherman Antitrust Act c. large firms cannot be found to be in violation of the Sherman Antitrust Act d. "mere size is no offense" e. possession of market power is sufficient for a firm to be found in violation of the Sherman Antitrust Act
A perfectly competitive firm seeking to maximize its profits would want to maximize the difference between: a. its marginal revenue and its marginal cost
b. its total revenue and its total cost. c. its accounting revenue and its accounting cost. d. its price and its marginal cost.
The market demand curve for a particular good
a. will shift to the right if more consumers enter the market b. could shift to the left if more consumers enter the market c. will be upward sloping if the good is an inferior good d. will always shift to the right if consumers' incomes increase e. could shift downward if more consumers enter the market