Perfectly competitive firms

A. are large relative to the size of the market.
B. sell identical products.
C. are price makers.
D. All of the above are correct.


Answer: B

Economics

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In a housing market with a rent ceiling set below the equilibrium rent, as time passes the supply of apartments

A) decreases. B) increases. C) does not change. D) becomes fixed by the government. E) increases while the demand for apartments decreases.

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In the long run, advertising by all firms in a monopolistically competitive industry

A) increases all firms' demand. B) decreases all firms' demand. C) lowers all firms' costs. D) might increase or decrease the firms' prices. E) lowers all firms' prices.

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In a cash acquisition

A) cash is transferred from one firm to another. B) the acquired firm must issue new stock. C) the acquiring firm buys stock. D) the acquiring firm buys the acquired firm's bonds.

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How much do you believe that current tax policy is influenced by politics, as opposed to sound and efficient tax policy?

What will be an ideal response?

Economics