Elaine’s firm is in a perfectly competitive industry. Why doesn’t Elaine try to sell more of her product by lowering its price below the market price?
a. Her demand curve is not elastic.
b. Doing so would be considered unethical price chiseling.
c. Her competitors would not allow it.
d. She can sell all she wants at the market price.
d. She can sell all she wants at the market price.
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Imagine that you borrow $5,000 for one year and at the end of the year you repay the $5,000 plus $600 of interest. If the inflation rate was 4%, what was the real interest rate you paid?
A) 16 percent B) 12 percent C) 8 percent D) 6 percent
Lump sum transfers ________ because they _______.
A. compromise efficiency; distort choices B. don't compromise efficiency; distort choices C. compromise efficiency; don't distort choices D. don't compromise efficiency; don't distort choices
Social Security payments:
A. continue to cause the elderly to lose income over time, since payments are not adjusted for inflation. B. cause concern for retirees, due to the increase in life expectancies. C. hold their real value because they are adjusted for inflation. D. are the biggest drain on the retirees budget each year.
Economists use the phrase “business cycle” when discussing
a. movements in interest rates. b. changes in economic productivity. c. fluctuations in employment. d. fluctuations in total output around the trend.