Why do some markets have more firms than others?
What will be an ideal response?
It depends on a number of factors. One involves the costs of the industry-in some industries, given consumer demand for the product, it makes sense for there to be more firms in some markets than in others. Other factors include barriers to entry-some markets are easier to enter than are others.
You might also like to view...
Refer to Figure 9-3. What is the reduction in value of consumer surplus after the imposition of the quota?
A) $8 million B) $26.25 million C) $27.75 million D) $30 million
When a country's ability to maintain its fixed exchange rate is doubted by investors:
A. it may fall under a speculative attack. B. the exchange rate is likely to spiral upward, out of control. C. the value of its currency tends to appreciate too quickly. D. All of these statements are true.
Statistical studies in the United States have reached the conclusion that for most workers the response of labor supply to wage changes is
a. quite strong. b. not very strong. c. inverted. d. always zero.
Using the supply and demand equations for wheat, solve for the equilibrium price and quantity as functions of I and r
What will be an ideal response?