Firms in perfect competition are often described as price
a. takers.
b. makers.
c. setters.
d. leaders.
a
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The fact that people have unlimited wants means that
a. they always want more of at least one good b. each person has an unlimited desire for every good c. labor unions demand wage increases d. selfish people are not concerned about others e. people buy goods without regard to what they can afford
Which of the following best explains why a firm in a perfectly competitive market must take the price determined in the market?
a. The short-run average total costs of firms that are price takers will be constant. b. If a price taker increased its price, consumers would buy from other suppliers. c. Firms in a price-taker market will have to advertise in order to increase sales. d. There are no good substitutes for the product supplied by a firm that is a price taker.
Suppose a U.S.-made machine costs $500 and the exchange rate was 100 yen = $1 yesterday. Today the exchange rate is 90 yen = $1 . You know then that the
a. machine would now cost more dollars b. machine would now cost the Japanese firm less yen c. machine would now cost less dollars d. machine would now cost the Japanese firm more yen e. yen has depreciated in value
In the long run,
a. inputs that were fixed in the short run remain fixed. b. inputs that were fixed in the short run become variable. c. inputs that were variable in the short run become fixed. d. variable inputs are rarely used.