Which of the following is an accurate example of a perfectly competitive market?
a. If the price of corn is $6 a bushel, a corn farmer will receive $8 a bushel for his corn.
b. If the price of soybeans is $7 a bushel, a soybean farmer will receive $7 a bushel for her soybeans.
c. If the price of alfalfa is $5 a bushel, an alfalfa farmer will receive $4 a bushel for her alfalfa.
d. If the price of barley is $4 a bushel, a barley farmer will receive $8 a bushel for his barley.
b. If the price of soybeans is $7 a bushel, a soybean farmer will receive $7 a bushel for her soybeans.
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Suppose a firm sells its product in a competitive market. If the ongoing wage rate in a competitive labor market is $30 and the market price of a firm's product is $2, then which of the following statements is true?
A) The firm should continue to hire workers until the marginal product of the last worker hired is 2 units. B) The firm should continue to hire workers until the marginal product of the last worker hired is 5 units. C) The firm should continue to hire workers until the marginal product of the last worker hired is 10 units. D) The firm should continue to hire workers until the marginal product of the last worker hired is 15 units.
When institutional money managers use their computers to decide on large sales or purchases in the stock market, they are employing
A. the herd instinct. B. the bandwagon effect. C. program trading. D. stock watering.
In a typical month of expansion, the U.S. economy sheds about 3.8 million jobs but creates only 2.8 million new ones
Indicate whether the statement is true or false
There is some evidence to suggest that X-inefficiency is:
A. absent whenever two or more producers are competing with one another. B. not encountered in either competitive or monopolistic firms. C. more likely to occur in monopolistic firms than in competitive firms. D. more likely to occur in competitive firms than in monopolistic firms.