The perfectly competitive firm has no influence over price because
a. its output is so insignificant relative to the market as a whole.
b. anti-trust laws constrain perfectly competitive firms.
c. consumers establish the prices of products.
d. it doesn't know its demand curve.
a
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Assume consumers eat either rice or pasta for dinner every night. If the price of rice increases, then one would expect to see:
A. an increase in the quantity of pasta demanded. B. a decrease in the demand for pasta. C. a decrease in the quantity of pasta demanded. D. an increase in the demand for pasta.
Decreases in the stock of capital will lead to
A) decreases in wages and GDP. B) increases in wages and total GDP. C) decreases in wages and increases in GDP. D) increases in wages and decreases in GDP.
Which of the following goods might, under the right circumstances, be substitutes for love?
A) Power B) Wealth C) Notoriety D) All of the above. E) Trick question: there are no substitutes for love.
Scientific evidence suggests that consumption of foods rich in fiber lowers cholesterol. As a result, the demand for bran increases at every price by 5,000 bushels and the supply curve for bran is perfectly price elastic. The quantity of bran consumed will
a. not change. b. change unless the demand curve is perfectly inelastic. c. rise by exactly 5,000 bushels. d. not rise by exactly 5,000 bushels unless the demand curve is perfectly inelastic.