Because most gas stations are small relative to the market in which they operate and gasoline is fairly homogeneous, the market for gasoline is considered to be perfectly competitive
Indicate whether the statement is true or false
FALSE
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If the money wage rate rises relative to the price level, firms ________ the quantity of labor they demand and workers ________ the quantity of labor they supply
A) increase; increase B) increase; decrease C) decrease; increase D) decrease; decrease
How do firms raise external funds through indirect finance?
What will be an ideal response?
Explain why advertising is very important to a monopolistically competitive firm but not to a perfectly competitive firm or a monopolistic firm
The Keynesian cross model attributes differences between actual output and planned expenditure to
a) unintended inventory accumulation or depletion b) buffer stocks resulting from risk-averse decision-making regarding production c) taxes d) net exports e) the diminishing marginal product of capital