In a perfectly competitive market the term "price taker" applies to
A) sellers and buyers.
B) sellers but not buyers.
C) buyers but not sellers.
D) only the smallest sellers and buyers.
Answer: A
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The comparative advantage of the South was in
(a) small farms producing for the local market. (b) plantation agriculture producing for export. (c) manufacturing. (d) shipbuilding and trades related to shipbuilding.
The act of firms working together to make decisions about price and quantity is called:
A. collusion. B. price discrimination. C. bulk ordering. D. artificial competition.
Monopolistic competition is similar to perfect competition in that:
A. firms earn economic profits in the long run B. there are a large number of firms C. firms face downward-sloping demand curves D. both a and b E. all of the above
Advertising provides consumers with product information and can promote competition. Thus, it is always welfare enhancing.
Answer the following statement true (T) or false (F)