Under perfect competition, firms are relatively ignorant of the actions of their competitors
a. True
b. False
Indicate whether the statement is true or false
False
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If the price of hair styling increases, then
A) hair styling salons hire fewer workers but makes more profit. B) hair stylists demand an increase in wages and the salons hire fewer workers. C) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts leftward. D) the value of marginal product of each hair stylist increases and the demand curve for hair stylists shifts rightward.
To stabilize real GDP when the money demand curve shifts on its own, the Fed must change the money supply
a. True b. False
Nebraska had an unseasonable cold winter requiring more salt for the roads than normal. If the supply does not change what would happen to the market for salt?
A. The increased demand but no change in quantity supplied causes a surplus of salt. B. There will be more suppliers of salt at every price. C. The increased demand but no change in quantity supplied causes a shortage of salt. D. There is no change in the market.
Using Figure 1.4 and starting at PP1, an increase in the capacity to produce can be represented by a movement from point
A. A to point C. B. C to point E. C. D to point E. D. A to point B.