Economists define a market to be competitive when the firms
A) spend large amounts of money on advertising to lure customers away from the competition.
B) watch each other's behavior closely.
C) are price takers.
D) All of the above.
C
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The process of calculating revenue and expenses through receipts and other facts to determine what the numbers are for a company or entity is known as
a. finance b. budgeting c. economics d. accounting e. none of these
The average standard of living for poor countries will not increase if the population growth exceeds economic growth.
Answer the following statement true (T) or false (F)
A competitive firm maximizes its profits (or minimizes is losses) by producing the quantity where the market price equals the firm's:
A. marginal cost. B. average total cost. C. average variable cost. D. average fixed cost.
An economy in which output has decreased and prices have decreased would suggest a:
A. decrease in short-run aggregate supply. B. increase in aggregate demand. C. increase in short-run aggregate supply. D. decrease in aggregate demand.