What decision must be made by firms with market power that is not made by firms which operate in perfectly competitive markets? Explain
What will be an ideal response?
Firms with market power must choose what price to charge for their products. Firms in perfect competition do not set price because they are price takers.
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Funds are channeled from savers to borrowers directly through ________ and indirectly through ________
A) financial markets; financial intermediaries B) financial intermediaries; financial markets C) main banks; branches D) brokers;' agents
The idea that individuals can reach an efficient equilibrium through private trades, even in the presence of an externality, is called:
A. market failure. B. trade quotas. C. the Coase theorem. D. the invisible hand.
Because there is a trade-off between inflation and unemployment in the short run,
a. lower unemployment will typically cause inflation to fall. b. policies designed to reduce unemployment will typically set off a recession. c. policies designed to reduce inflation will cause unemployment to fall as well. d. higher inflation will generally be associated with higher unemployment. e. lower inflation will generally be associated with higher unemployment.
competition is present when
What will be an ideal response?