The demand curves for firms in a purely competitive industry are perfectly elastic.
Answer the following statement true (T) or false (F)
True
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Refer to Figure 4-1. Kendra's marginal benefit from consuming the second ice cream cone is
A) $6.50 B) $6.00 C) $3.00 D) $2.25
The euro floats against other currencies, but the member nations of the euro have no separate national money. For this reason, Spain, that uses the euro as its currency is listed under the managed float arrangement
a. True b. False Indicate whether the statement is true or false
A critical assumption made by all economic models is that
a. few economic decision makers face constraints under capitalism b. few economic decision makers face constraints under communism c. every economic decision maker, except the extremely wealthy, faces constraints d. every economic decision maker, except the federal government, faces constraints e. every economic decision maker faces constraints under every economic system
Which of the following events must result in a higher price in the market for cigars?
a. Demand for cigars increases, and supply of cigars decreases. b. Demand for cigars and supply of cigars both decrease. c. Demand for cigars decreases, and supply of cigars increases. d. Demand for cigars and supply of cigars both increase