In determining whether a market meets the conditions for perfect competition, it is necessary to
A. consider the number of firms in the market.
B. determine the appropriate size of the firm.
C. assess the production technology available to firms.
D. evaluate the promotional tools that can be used by firms.
Answer: A
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In most less developed countries, the initial target of import substitution is to promote domestic production of
(a) consumer goods. (b) food and other agricultural goods. (c) capital goods. (d) manufactured intermediate goods.
Suppose you were competing in a sealed-bid, second-price auction for a Vermeer painting, which you happen to value at $100,000 . What bid should you submit?
a. Exactly $100,000 b. Somewhat lower than $100,000 depending on the number of other bidders c. Somewhat higher than $100,000 depending on the number of other bidders d. Cannot say which of a, b, or c is right without further information
A major disadvantage of the corporate form of business is limited liability
a. True b. False
Physical and human capital investments are
a. different in that the opportunity for economic profit is present for physical capital but not human capital decisions. b. different in that human capital decisions do not involve future income considerations while physical capital investments do. c. similar in that non-pecuniary considerations do not influence the choices of utility-maximizing decision makers in either case. d. similar in that both involve forgoing current income (and consumption) with the objective of increasing one's future income (and consumption).