A demand curve with continuously changing slope over all quantity values will always have a constant price elasticity of demand.
Answer the following statement true (T) or false (F)
False
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If the market price is $25 in a perfectly competitive market, the marginal revenue from selling the fifth unit is
A) $5. B) $12.50. C) $25. D) $125.
The military is not a perfectly competitive market because
A) there is only one buyer, i.e., the government, for military goods/services. B) there is imperfect information, i.e., intelligence branches. C) there are heterogeneous goods/services because each military branch provides different goods/services. D) All of the above
Suppose the U.S. government imposes a maximum price of $5 per gallon of gasoline, and the current equilibrium price is $3.50 per gallon. This policy represents a:
A) binding price floor. B) non-binding price floor. C) binding price ceiling. D) non-binding price ceiling.
Which of the following is a difference between monopoly and perfect competition?
a. Positive economic profits earned by perfectly competitive firms result in deadweight loss, while positive economic profits earned by a monopoly result in the production of a socially efficient output level. b. Positive economic profits earned by firms in a perfectly competitive market attract new firms into the market, causing profits to increase over time, while barriers to entry protect a monopolist's profits. c. Positive economic profits earned by a monopolist attract new firms into the industry, while barriers to entry protect profits of a perfectly competitive firm. d. Positive economic profits earned by firms in a perfectly competitive market attract new firms into the market, causing profits to decrease over time, while barriers to entry protect a monopolist's profits.