In a perfectly competitive market, how do the number and size of suppliers relate to the ability to enter and exit into markets?
What will be an ideal response?
In a perfectly competitive market, it is relatively easy for a supplier to enter. Also, these firms realize that once they enter, it is easy for them to exit. They will probably not be stuck in the market and take a huge loss. These conditions attract a large number of suppliers into the market. In addition, these suppliers do not need a large amount of financial backing to enter the market. As a result, they can set up a small company that turns a profit. Because of this, many suppliers in a perfectly competitive market tend to be small.
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If U.S. net exports are positive
A) other countries borrow from the United States to pay for some of the goods they purchase from the United States. B) other countries make loans to the United States so that the United States can pay for some of the goods it purchases from other countries. C) the United States sells some of the assets it owns in other countries to pay for some of the goods it sells to other countries. D) the United States borrows from other countries to pay for some of the goods the United States purchases from them.
An IOU that promises to pay a certain amount at maturity, and also to pay periodic fixed amounts until that date, is called a(n)
A. stock. B. equity. C. bond. D. futures contract.
Which of the following statements is correct?
a. A general sales tax on food is regressive when low-income taxpayers spend a larger proportion of their income on food than high-income taxpayers. b. A general sales tax on food is regressive when middle income taxpayers spend a smaller proportion of their income on food than high-income taxpayers. c. A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than middle income taxpayers. d. A general sales tax on food is regressive when high-income taxpayers spend a larger proportion of their income on food than low-income taxpayers.
If a firm can maximize its profit by producing the output where price is equal to its marginal cost, the firm is operating in:
A. a perfectly competitive market. B. an oligopolistic market. C. a monopolistic market. D. a monopolistically competitive market.