Which of the following best describes perfect competition?
A. 40 firms producing an identical product.
B. All firms earning an economic profit in the long run.
C. Many firms, some large and some small, with perfect knowledge.
D. Hundreds of very small firms, producing an identical product.
D. Hundreds of very small firms, producing an identical product.
You might also like to view...
The long-run aggregate supply curve shifts right at the same time as
A) the Laffer curve shifts upward. B) the production possibilities curve shifts inward. C) the production possibilities curve shifts outward. D) the inflation rate increases.
The ability of the Federal Reserve to use monetary policy to affect economic variables such as real GDP ultimately depends upon its ability to affect
A) nominal interest rates. B) foreign exchange rates. C) real interest rates. D) tax rates.
The supply curve will shift to the left when
A) the supply of the product increases. B) the demand for the product decreases. C) some producers leave the industry. D) the product becomes fashionable.
Network organizations depend upon
A. decentralization of operating decisions to the business-unit level. B. work groups and specific projects without any formal lines of authority. C. formal lines of authority. D. intersecting lines of authority.