Explain what is meant by a competitive market
Please provide the best answer for the statement.
A competitive market is an institution or mechanism which brings together large numbers of independently acting buyers and sellers who want to exchange some standardized product. If the product is not standardized, then the market is not “purely competitive,” although it may be very competitive. Examples of purely competitive markets are a central grain exchange, a stock market or a market for foreign currencies where there are many buyers and sellers acting independently.
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What is the principal-agent problem as applied to corporations?
What will be an ideal response?
If average variable cost is falling, we know that:
a. marginal cost is falling. b. marginal cost is less than average variable cost. c. marginal cost is greater than average variable cost. d. marginal cost is rising.
Federal government budget deficits
A. tend to increase when the economy enters a recession. B. have tended to increase in the majority of years since 1980. C. have caused a growing national debt. D. have all of these characteristics.
The money prices attached to goods in the economy
A) conceal the fact of their scarcity. B) make the goods artificially scarce. C) provide information about their scarcity. D) reflect the level of greed prevailing in particular markets.