Which of the following is not a basic market model?
A. Pure competition
B. Free enterprise
C. Oligopoly
D. Monopoly
B. Free enterprise
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Which of the following is true of an intermediate good? a. It is of no value to the seller
b. It is of no value to the buyer. c. It is purchased for household production. d. It helps produce another good. e. It is sold at a discounted price by firms.
Answer the following statement(s) true (T) or false (F)
1. An increase in the number of sellers leads to a decrease in supply. 2. Changes to the market price can bring supply and demand together. 3. At the equilibrium quantity, the quantity demanded equals the quantity supplied. 4. At $3 per pound, the quantity of oranges demanded is 2,000 pounds and the quantity supplied is 4,000 pounds. As a result, there is a shortage at this price.
Suppose Ben owns a small company that makes kites. The market for kites is perfectly competitive, and kites sell for $25 each. Ben's total production costs vary depending on the number of kites he makes each day, as shown in the accompanying table. Number of kites Per DayTotal Cost Per Day ($)0100111021263148417252006235 What is the profit-maximizing number of kites for Ben to make each day?
A. 0 B. 3 C. 5 D. 4
At a perfectly competitive equilibrium with production and trade, the slope of the production possibility curve will be
A) equal to the slope of the price line faced by the consumers. B) steeper than the slope of the price line faced by consumers. C) flatter than the slope of the price line faced by consumers. D) either steeper or flatter than the price line faced by the consumers, depending upon the relative preferences of the consumers.