Which of the following is unique to perfect competition?
a. The individual firm cannot earn economic profit in the long run.
b. It is easy for new firms to enter the industry.
c. The market demand curve slopes downward.
d. The demand curve facing an individual firm is perfectly elastic.
e. The firms in the industry produce a homogeneous product.
D
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Suppose the quantity supplied of computers increases from 2 million to 4 million units as the price of a computer increases from $600 to $700. What does the price elasticity of supply equal?
What will be an ideal response?
Which of the following is NOT a correct criticism of the Lorenz curve?
A) It does not include payments in kind. B) It does not deal with differences in family size. C) It ignores the impact of age distribution on income distribution. D) It refers to money income after taxes.
Which of the following would be expected if the tariff on foreign-produced automobiles were increased?
a. The domestic price of automobiles would fall. b. The supply of foreign automobiles to the domestic market would decline, causing auto prices to rise. c. The number of unemployed workers in the domestic automobile industry would rise. d. The demand for foreign-produced automobiles would increase, causing the price of automobiles to increase in other nations.
Because the demand for the matinee showing is ________________ elastic than the demand for the evening showing, the demand curve for matinees is _______________ than the demand for evening movie showings.
a. less, steeper b. less, flatter c. more, flatter d. more, steeper