The perfectly competitive model assumes that:
a. individual sellers can influence the market price
b. sellers can increase their total revenue by raising prices.
c. firms can enter and exit the industry with relative ease.
d. firms compete by varying a product's quality rather than a product's price.
c
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Congress trimmed funding for TSA by $____________ this year and the agency cut _______ screener positions.
Fill in the blank(s) with the appropriate word(s).
According to the Keynesian model,
A. aggregate demand plays no part in determining the price level in a hyperinflationary economy. B. aggregate demand alone determines the levels of output and employment when an economy is in the midst of a depression. C. aggregate supply alone determines the price level when an economy experiences creeping inflation. D. market economies can never be plagued by protracted downturns in economic activity.
Profits are part of the
A. total income. B. final consumer goods. C. factor services. D. monetary value of output.
Suppose Jason owns a small pastry shop. Jason wants to maximize his profit, and thinking back to the microeconomics class he took in college, he decides he needs to produce a quantity of pastries which will minimize his average total cost. Will Jason's
strategy necessarily maximize profits for his pastry shop? A) Yes; Since Jason's pastry shop is in a perfectly competitive market, the only way to maximize profit is to produce the quantity where average total cost is minimized. B) Not necessarily; This strategy will only maximize Jason's profit in the long run, but not in the short run. C) No; In order to maximize profit, Jason would never want to produce the quantity where average total cost is minimized. D) Not necessarily; Depending on demand, Jason may maximize profit by producing a quantity other than that where average total cost is at a minimum.