Which of the following is a reason to study the decisions of price takers?
a. While there are not many price-taker markets, these few markets dominate the economy.
b. The decision making of both price searchers and price takers is identical.
c. The price-taker model enhances our knowledge of competition as a dynamic process.
d. Price takers are the most common type of business in the real world.
C
You might also like to view...
If the exchange rate is such that $1 equals 10 Mexican pesos, then the price of a peso is
A) $10. B) $1. C) $0.20. D) $0.10.
Diminishing marginal utility means that as you consume more of a good, other things constant, the:
a. total satisfaction you obtain from consuming this good falls. b. total amount produced falls. c. marginal product falls. d. additional satisfaction you obtain from each additional unit of the good falls. e. total satisfaction you obtain from each extra good becomes constant.
Other things being equal, the law of demand suggests that as:
A. The demand for iPads increases, this will cause the price to increase B. Income increases, the quantity of iPads demanded will increase C. The price of iPads decreases, the quantity demanded will increase D. The price of iPads decreases, the quantity demanded will decrease
As price falls along a particular demand curve, consumer surplus:
A. decreases rapidly. B. decreases by a very small amount. C. remains constant. D. increases.