Perfect competition is a market structure
A) in which any firm would have serious impediments to entry or exit.
B) in which individual buyers and sellers have no effect on the market price.
C) resulting from individual firms selling highly differentiated products.
D) where there is significant regulation and markets are always efficient.
Answer: B
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Which of the following is an example of discretionary fiscal policy?
A) a decrease in income tax receipts with falling income during a recession B) tax cuts passed by Congress in 2008 to combat the recession C) a decrease in food stamps issued during an expansion D) an increase in unemployment insurance payments during a recession
As producers have more time to adjust to a price change, price elasticity of supply
a. increases b. decreases c. remains the same d. rises and then falls e. falls and then rises
Suppose the demand for nachos increases. What will happen to producer surplus in the market for nachos?
a. It increases. b. It decreases. c. It remains unchanged. d. It may increase, decrease, or remain unchanged.
GDP is 5 trillion dollars, the price level is $2, money supply is 2 trillion dollars. What is the value of the velocity of money according to the quantity equation?
A. 5 B. 2 (WA) C. 10 D. 8 E. Can't be determined.