What are the characteristics of perfect competition?
What will be an ideal response?
Perfectly competitive industries have many firms, a homogeneous product, no barriers to entry, and demand is perfectly elastic.
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Describe the Taylor rule. If the Fed were following the rule, what would the nominal Fed funds rate be if inflation over the past year were 4% and output were 1% below its full-employment level?
What will be an ideal response?
Each country's IMF quota subscription is determined by
A) the relative size of its national income. B) the size of its population. C) the size of world trade. D) how much a country wants to contribute.
If the demand for flat screen television sets is rising while at the same time the price of a flat screen TV is falling, there is evidence of:
A. constant returns to scale. B. diseconomies of scale. C. economies of scale. D. diminishing marginal product.
An increase in product price will cause:
A. quantity demanded to decrease. B. quantity supplied to decrease. C. quantity demanded to increase. D. the supply curve to shift to the left.