We assume that in the short run in a perfectly competitive market the:
A. number of firms is fixed.
B. total quantity supplied is fixed.
C. price is fixed.
D. All of these are true of the short run.
A. number of firms is fixed.
You might also like to view...
The WTO was established by the ________ of multilateral trade negotiations
A) Kennedy Round B) Tokyo Round C) Uruguay Round D) Dillon Round E) NAFTA Round
Positive externalities are _____ because their producers have no incentive to take the _____ into account
a. oversupplied; external cost b. undersupplied; external benefit c. oversupplied; external benefit d. undersupplied; external cost
For a perfectly competitive firm that should continue to operate in the short run, loss is minimized where
a. MR is maximized b. MR = MC c. P < MC d. MR < MC e. MR > ATC
Each of the following is consistent with the classical theory EXCEPT
A. wages and prices are flexible. B. the economy is always at full employment. C. supply creates its own demand. D. laissez-faire.