A firm is a price taker if it
A) always sells its output at the industry-determined price.
B) takes consumer demand into consideration in setting its price.
C) takes its production costs into consideration in setting its price.
D) uses a pricing strategy to gain market share.
A
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Refer to the scenario above. The winner of this auction will earn a surplus of ________ if he follows his dominant strategy
A) $100 B) $300 C) $400 D) $200
A consumer values a car at $525,00 . and a producer values the same car at $485,000 . If the transaction is completed at $510,000 . what level of tax rate will result in unconsummated transaction?
a. 1% b. 5% c. 3% d. 2%
If MPC = 0.8, how much government spending would be needed to close a recessionary gap of $500?
a. –100 b. +80 c. –80 d. +500 e. +100
The willingness to pay is the maximum amount that a buyer will pay for a good and measures how much the buyer values the good
a. True b. False Indicate whether the statement is true or false