Which of the following is a consequence of competition?
A. An unrelenting squeeze on prices and profit.
B. Positive economic profit in the long run.
C. Price-gouging behavior.
D. Elimination of the most efficient firms.
Answer: A
You might also like to view...
If households consume less at each level of disposable income, they are
A. working less. B. saving more. C. spending more. D. saving less.
When calculating GDP, the Bureau of Economic Analysis releases its "advanced estimate" of a quarter's GDP approximately
A) three months before the quarter has ended. B) one year after the quarter has ended. C) three months after the quarter has ended. D) one month after the quarter has ended.
If individuals have money illusion then they
A) think that money is worthless. B) ignore the effects on their income or wealth of some price changes in the economy. C) they base their production and consumption decisions on relative rather than absolute prices. D) Both B and C.
In this graph, what is the difference between the marginal cost and the average total cost?
a. 0
b. $4.90
c. $6.00
d. $100