An assumption of a competitive market is that both buyers and sellers are price takers. When we go to the mall to shop for clothing or to the grocery to buy food, what do we usually observe?
A. Both buyers and sellers are usually price takers.
B. Buyers are often price makers, but sellers are usually price takers.
C. Buyers are often price takers, but sellers are usually price makers.
D. Both buyers and sellers are usually price makers.
Answer: C
You might also like to view...
Accounting profit is equal to
A) total revenue minus dividends and interest. B) dividends paid. C) total revenue minus implicit costs. D) total revenue minus explicit costs.
According to the U.S. Supreme Court's 1945 ruling on Alcoa,
a. all monopolies are illegal b. price fixing agreements are illegal under the rule of reason c. small firms can be found to be in violation of the Sherman Antitrust Act d. "mere size is no offense." e. possession of market power is sufficient for a firm to be found in violation of the Sherman Antitrust Act
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the short run would be:
A. P1 and Y2. B. P2 and Y3. C. P3 and Y1. D. P2 and Y2.
According to the AS/AD model, a contractionary monetary policy is appropriate:
A. when saving equals investment. B. whatever the level of saving and investment. C. when saving is greater than investment. D. when saving is less than investment.