Perfect competition is a market in which no buyer or seller has market power.
Answer the following statement true (T) or false (F)
True
A perfectly competitive firm, facing numerous rivals, has difficulty maintaining prices or profits.
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If households pay a fixed annual fee for trash disposal,
A) households will all tend to produce the same amount of garbage. B) households have no incentive to cut back on the amount of garbage they generate. C) that fee will provide households with an incentive to cut back on the amount of garbage they generate. D) that fee will discourage households from throwing out reusable materials. E) that fee will discourage households from throwing out toxic or otherwise harmful materials.
Sustained economic growth occurs when workers' productivity rises
a. True b. False Indicate whether the statement is true or false
If the percent change in price is greater than the percent change in quantity demanded, then demand is price inelastic
Indicate whether the statement is true or false
In the short run with predetermined prices, when output is less than aggregate expenditure, firms will:
A. reduce production. B. decrease aggregate expenditure. C. increase aggregate expenditure. D. increase production.