What happens to the price of the product and total revenue for a perfectly competitive firm if it doubles the amount of output it supplies in the market?
What will be an ideal response?
The perfectly competitive firm is so insignificant relative to the market as a whole that it has absolutely no influence over price. Total revenue of the firm will increase because it can sell as many units of output as it wishes in a perfectly competitive market.
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Vertical contracts between manufacturers and retailers often aim to
a. Incentivize the retailers to undertake costly activities, which they otherwise may not realize the full benefits of on their own b. Reward the retailer for undertaking the risk inherent in introducing a new product c. Serve as a "signal" of the manufacturer's belief of the likely success of his product d. All of the above
Economists tend to see taxing an action that produces a negative externality as:
A. the best solution possible, but often unattainable. B. the second best solution possible but one that is attainable. C. the best solution possible and often the most attainable. D. the second best solution possible, but often unattainable.
If the multiplier is 5, the MPC is
A. 0.1 B. 0.5 C. 0.2 D. 0.8
A variable is standardized in the sample:
A. by multiplying by its mean. B. by subtracting off its mean and multiplying by its standard deviation. C. by subtracting off its mean and dividing by its standard deviation. D. by multiplying by its standard deviation.