If the market demand decreases for a good sold in a perfectly competitive market, firms in the market:
A. will be able to charge a higher price for their product.
B. will receive a lower price for their product.
C. will not be able to change their price.
D. will not be affected by the change in demand.
Answer: B
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The long-run supply curve for a firm in a perfectly competitive industry is:
A) negatively sloped. B) positively sloped. C) vertical. D) horizontal.
If an increase in investment spending of $20 million results in a $200 million increase in equilibrium real GDP, then
A) the multiplier is 0.1. B) the multiplier is 1. C) the multiplier is 10. D) the multiplier is 100.
Alfonse is a farmer who grows 20,000 bushels of corn each year. Last year, the market price was $3 per bushel. If Alfonse earned $80,000 . the government's target price per bushel must have been
a. $60,000 b. $20,000 c. $4,000 d. $4 e. $1
For a signal to convey credible information about the quality of a good, the signal must:
A. be equally costly to send, regardless of the good's quality. B. not be costly to send. C. be less costly to send if the good is high quality than low quality. D. be less costly to send if the good is low quality than high quality.