Which of the following are elements for markets that resemble perfect competition?
a. flat demand curves; easy exit; easy entry
b. steep demand curves; difficult exit; easy entry
c. flat supply curves; easy exit; difficult entry
d. steep supply curves; difficult exit; difficult entry
a. flat demand curves; easy exit; easy entry
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Normative economic analysis tends to
A) generate testable hypotheses. B) include the way someone thinks things should be or ought to be. C) involve descriptive statements. D) lead to empirical testing of data.
_____ are an institution where the protocols may determine a _____ and the expected revenue of the seller
a. Contracts; buyer's pricing strategy b. Auctions; participant's best bidding strategy c. Auctions; participant's chances of winning the bid d. Contracts; buyer's share of gains from the transaction
Refer to Table 8.1. Assuming the price of labor (L) is $5 per unit and the price of capital (K) is $10 per unit, which of the following statements is TRUE? A) The firm will use production technique A to produce all three units of output. B) The firm will use production technique B to produce all three units of output. C) The firm will use production technique B to produce the first two units of output and production technique A to produce the third unit of output. D) The firm will use production technique A to produce the first unit and production technique B to produce the second and third units of output.
Smoothing the peaks and troughs of the business cycle with fiscal policy is
A. difficult, because the government lacks important information about the economy. B. difficult, because economists have not developed any theoretical models of the macroeconomy. C. relatively simple, because the political process usually works smoothly and without significant lags. D. relatively simple, because the government has access to the best information available.