Which of the following is NOT a characteristic of a perfectly competitive industry?
A. The firms in the industry produce a homogeneous product.
B. There are large numbers of buyers and sellers.
C. Sellers have better information about the product than consumers.
D. Any firm can enter or leave the industry without serious impediments.
Answer: C
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Suppose the total cost of producing T-shirts can be represented as TC = 50 + 2q. The average cost of the 5th T-shirt is
A) 2. B) 12. C) 52. D) 60.
A mutual fund
a. is a financial market where small firms mutually agree to sell stocks and bonds to raise funds. b. is funds set aside by local governments to lend to small firms who want to invest in projects that are mutually beneficial to the firm and community. c. sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit. d. is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks, bonds, or both stocks and bonds.
Suppose the market consists of 3 individuals: Citizen A, Citizen B and Citizen C.
If the good shown on the graphs is a public good, and the marginal cost of the 20th unit is $10, then the optimal quantity of the public good is:
A. 20 units B. less than 20 units. C. zero. D. greater than 20 units.
The incidence of taxation refers to:
A. Who in society actually pays the tax B. The structure of basic income tax rates C. Whether taxes are progressive or regressive D. Whether or not the benefits-received principle applies