In a perfectly competitive market,
a. one large firm controls the market and sets price, while the other smaller firms behave as price takers.
b. all firms produce and sell a homogeneous product.
c. the output sold by a particular firm may be quite different from the output sold by the other firms in the market.
d. it's difficult for new firms to enter the market due to barriers to entry.
e. the products sold by each firm are only slightly different.
b. all firms produce and sell a homogeneous product.
You might also like to view...
If the short-run average variable cost of production for a firm is decreasing, then it follows that
A. average variable cost must be greater than marginal cost. B. marginal cost must be decreasing. C. average variable cost must be greater than average fixed cost. D. average fixed cost must be constant.
The Equivalent Variation resulting from a quota is best defined as
A) the amount a consumer would pay to have the quota removed. B) the amount the consumer would need to voluntarily accept the quota. C) the amount a consumer would pay for the quantity specified by the quota. D) the loss in utility resulting from the quota.
What is human capital, and what factors contribute to human capital development?
What will be an ideal response?
According to new classical economists, policies should be introduced suddenly to surprise the economy in order to
A. Prevent political lobbying that results in goal conflicts. B. Minimize design problems that impede the implementation of policy. C. Avoid the lags associated with policy announcements. D. Prevent anticipatory behavior that defeats the purpose of the policy.