Boeing Corporation and Airbus Industries are the only two producers of long-range commercial aircraft. This market is not perfectly competitive because:
A) each company has annual sales over $10 billion.
B) each company can significantly affect prices.
C) Airbus receives subsidies from the European Union.
D) Airbus cannot sell aircraft to the United States government.
E) all of the above
B
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According to economic theory, the real wage should
a. be greater than the price of the product produced. b. equal the marginal physical product of labor. c. be less than the marginal product of capital. d. decline as productivity rises.
If a nation imposes a tariff on imports, the portion of the tax paid by citizens depends upon
a. elasticity of demand. b. elasticity of supply. c. how important the good is. d. income elasticity. e. cross elasticity of demand with domestic products.
In an open economy with flexible exchange rates, monetary policy affects consumption and investment by changing the ________ and affects net exports by changing the ________.
A. real interest rate; exchange rate B. exchange rate; real interest rate C. growth of domestic real GDP; growth of foreign real GDP D. inflation rate; unemployment rate
A perfectly competitive firm's economic profit is maximized by producing the amount of output such that
A) total revenue equals total variable cost. B) marginal revenue equals marginal cost. C) total revenue equals total cost. D) marginal revenue is equal to total revenue.