Ans: d. there are so many buyers and so many sellers that each has a negligible impact on the price of the product.
A competitive market is one in which
a. there is only one seller, but there are many buyers.
b. there are many sellers and each seller has the ability to set the price of his product.
c. there are many sellers and they compete with one another in such a way that some sellers are always being forced out of the market.
d. there are so many buyers and so many sellers that each has a negligible impact on the price of the product.
Economics
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Answer the following statement true (T) or false (F)
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Which of the following is not an assumption made by the dynamic model of aggregate demand and aggregate supply?
A) The short-run aggregate supply curve shifts to the right except during periods when workers and firms expect higher wages. B) The aggregate demand curve shifts to the right during most periods. C) Aggregate demand and potential real GDP decrease continuously. D) Potential real GDP increases continuously.
Economics
Explicit costs are
a. not part of opportunity cost b. the only cost considered in opportunity cost c. exactly the same as implicit costs d. actual monetary payments for resources purchased e. the opportunity costs of using resources owned by the firm
Economics
Unlike an internally held public debt, an externally held public debt
a. cannot pass the debt burden on to future generations b. can pass the debt burden on to future generations c. expires upon maturity d. cannot be reduced because foreigners hold the debt e. causes crowding out
Economics