The best example of a perfectly competitive market would be the market for:
A. computers.
B. shoes.
C. grain.
D. cameras.
Answer: C
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The above figure gives your budget line between CDs and magazines. If the price of a magazine falls, then the budget line
A) shifts outward and the slope does not change. B) rotates inward with no change in the horizontal intercept. C) rotates inward with no change in the vertical intercept. D) rotates outward with no change in the vertical axis.
The figure above shows the marginal revenue and costs of a perfectly competitive firm. The marginal cost of the last unit produced is
A) $4 per unit. B) $8 per unit. C) $16 per unit. D) None of the above answers is correct.
Suppose the growth rate of the firm's profit is 7 percent, the interest rate is 9 percent, and the current profits of the firm are $60 million. What is the value of the firm?
A. $4,480.6 million B. $289.4 million C. $3,270 million D. None of the statements associated with this question are correct.
Suppose that the ABC industry produces a good that results in significant spillover costs to society. Such production suggests that:
A. at the market price, quantity demanded is less than quantity supplied. B. the firms in this industry are not maximizing profits. C. resources are overallocated to the industry. D. resources are underallocated to the industry.