Which of the following characteristics does perfect competition share with monopolistic competition?
a. price-taking firms
b. zero long-run economic profit
c. homogeneous product
d. some barriers to entry
e. economies of scale in production
B
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What will be an ideal response?
Refer to Figure 24-2. Ceteris paribus, an increase in the expected price of an important natural resource would be represented by a movement from
A) SRAS1 to SRAS2. B) SRAS2 to SRAS1. C) point A to point B. D) point B to point A.
When government action is justified based on the argument that everyone agrees to be coerced _____
a. we cannot be sure that everyone is in favor of the action b. the same justification is true of market exchange c. we can be sure that the current state of affair is Pareto efficient d. the private interest becomes the public interest
Graphically, market supply for a product:
A. is the horizontal difference of the individual supply curves. B. is the horizontal sum of the individual supply curves. C. is the vertical difference of the individual supply curves. D. is the vertical sum of the individual supply curves.