Which of the following is an example of perfect competition?
A.) One large firm supplies the entire product to the market.
B.) Two firms supply the entire market and compete with each other for customers.
C.) Many small firms all produce the same good.
D.) Many firms supply similar products, but each has significant brand loyalty.
Ans: C.) Many small firms all produce the same good.
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Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.
A. Only ii B. i and ii C. Only iii D. i and iii E. Only i
Refer to the figure above. What does the region ABDC indicate?
A) Economic profit B) Loss incurred by the producer C) Consumer surplus D) Deadweight loss
What is the difference between the nominal interest rate and the real interest rate?
What will be an ideal response?
The Great Depression of the 1930s
a. confirmed the value of a "hands off" policy for governments. b. was exacerbated by an expansionary monetary policy. c. was a worldwide event. d. continued throughout the 1940s without any interruption.