A perfectly competitive industry's market price is found by
A) finding the point on the market demand curve where the largest number of units will be purchased.
B) locating the intersection of the market demand and market supply curves.
C) the horizontal summation of all the industry firms' individual supply curves.
D) identifying the price at which each firm realizes its largest economic profit.
Answer: B
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Increased immigration is likely to lead to the labor demand curve shifting to the right
Indicate whether the statement is true or false
Industrial market countries make up about _____ of the world population but produce more than _____ of the world's output
a. 16 percent; 50 percent b. 40 percent; 75 percent c. 40 percent; 58 percent d. 55 percent; 65 percent e. 38 percent; 55 percent
Assume that the central bank sells government securities in the open market. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to real GDP and monetary base in the context of the Three-Sector-Model? State your answer after the macroeconomic system returns to complete equilibrium
a. Real GDP rises and monetary base rises. b. Real GDP rises and monetary base falls. c. Real GDP and monetary base fall. d. Real GDP and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Consider two restaurants located next door to each other: Quick Burger and The Sunshine Café. If Quick Burger opens a drive-through window, the increased traffic and noise will bother customers seated outside at The Sunshine Café. The table below shows the monthly payoffs to Quick Burger and The Sunshine Café when Quick Burger does and does not operate a drive-through window. Quick Burger Operates aDrive-Through WindowQuick Burger Does NotOperate Drive-Through WindowQuick Burger$24,000$15,000The Sunshine Café$11,000$23,000If Quick Burger has the legal right to operate a drive-through, and Quick Burger and The Sunshine Café CANNOT negotiate with each other, then will Quick Burger operate a drive-through window?
A. No, because it would lower the payoff for The Sunshine Café. B. Yes, because Quick Burger's payoff is higher when it operates a drive-through. C. No, because it is not socially efficient to operate a drive-through. D. It cannot be determined.