A purely competitive firm does not try to sell more of its product by lowering its price below the market price because:
A. its demand curve is inelastic, so total revenue will decline.
B. this would be considered unethical price chiseling.
C. its competitors would not permit it.
D. it can sell all it wants to at the market price.
Answer: D
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Use the following table to answer this question, which provides information on the production of a product that requires one variable input. InputTotal Product0015220332442550655758858956 Diminishing marginal returns set in with the addition of the
A. fourth unit of input. B. first unit of input. C. second unit of input. D. third unit of input.
In reviewing discussions of life in developing countries, what is it about lifestyles in the low-income countries compared with lifestyles in the high-income countries that most strikes you? Why?
What will be an ideal response?
Sales finance companies
A) purchase accounts receivable of small firms at a discount. B) sell commercial paper and buy long-term corporate bonds. C) take in deposits from savers and buy corporate commercial paper. D) are affiliated with companies which manufacture or sell goods.
Suppose there is a simultaneous reduction in expected future output and reduction in the future expected interest rate. This will cause which of the following to occur?
A) the IS curve to shift left in the current period B) the IS curve to shift right in the current period C) the LM curve to shift up in the current period D) the LM curve to shift down in the current period E) an ambiguous effect on the position of the IS curve in the current period