The individual firm's demand curve under conditions of perfect competition is
a. perfectly horizontal
b. perfectly vertical
c. upward sloping
d. downward sloping
e. nonexistent in perfect competition
A
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Firms in which type of market make zero economic profit in the long run?
A) perfect competition and monopolistic competition B) monopoly C) perfect competition D) monopolistic competition
A rising price level decreases consumption by decreasing the real value of household wealth
Indicate whether the statement is true or false
Which of the following best approximates a pure monopoly?
A. The foreign exchange market. B. The Kansas City wheat market. C. The only bank in a small town. D. The soft drink market.
Downward wage rigidity arises when:
A) workers expect wages to increase due to economic expansion. B) workers and firms resist to wage cuts. C) firms resist increasing wages. D) quantity of labor demanded exceeds the quantity of labor supplied.