A perfectly competitive firm acts as a ___________, so it calculates total revenue by multiplying the given market price by the quantity of output the firm chooses.
a. natural monopoly
b. price taker
c. technological monopoly
d. drag on the market
b. price taker
A perfectly competitive firm acts as a price taker, so it calculates total revenue by multiplying the given market price by the quantity of output the firm chooses.
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Which of the following statements about monetary policy is correct?
a. Whatever happens with aggregate supply and aggregate demand in the long run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the short and medium term. b. Whatever happens with aggregate supply and aggregate demand in the short run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the medium and long term. c. Whatever happens with aggregate supply and aggregate demand in the short and medium run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the long term. d. Whatever happens with aggregate supply and aggregate demand in the medium and long run, monetary policy can be used to prevent inflation from becoming entrenched in the economy in the short term.
The slope of a fairly flat upward-sloping line will be a
a. small positive number. b. large positive number. c. small negative number. d. large negative number.
The change in the price of a good leads to a change in ________, which leads to a ________.
A. supply; shift of the supply curve B. supply; movement along a supply curve C. quantity supplied; shift of the supply curve D. quantity supplied; movement along a supply curve
If labor supply is very elastic, the payroll tax is
A. borne mostly by the workers. B. split evenly between the employer and the workers. C. borne mostly by the employer. D. borne entirely by the employer.