Perfectly competitive firms
A. are small relative to the size of the market.
B. sell homogeneous products.
C. are price takers.
D. All of the above are correct.
Answer: D
You might also like to view...
In a monopolistically competitive market, the consumer receives the benefit of
A) production at minimum average cost. B) production where price equals marginal cost. C) product differentiation. D) allocative efficiency.
An increase in taxes shifts the
A. aggregate supply curve outward. B. aggregate demand curve outward. C. consumption schedule upward. D. consumption schedule downward.
Suppose the economy experiences a recessionary gap. Expansionary monetary policy will
A) increase interest rates and increase exchange rates. B) increase interest rates and decrease exchange rates. C) decrease interest rates and increase exchange rates. D) decrease interest rates and decrease exchange rates.
Table 28.1Reduction in Emissions (in tons)MC to Reduce Emissions by Steel PlantMC to Reduce Emissions by Paper Plant1$400$20025002803600320Refer to Table 28.1. Suppose the government commands each firm to reduce its emissions by one ton each. What is the total cost?
A. $400. B. $920. C. $780. D. $600.