Each firm in a perfectly competitive industry
A) produces a good that is slightly different from that of the other firms.
B) produces a good that is identical to that of the other firms.
C) attains economies of scale so that its efficient size is large compared to the market as a whole.
D) has control over at least one unique resource to separate themselves from their competitors.
E) has an important influence on the market price of the good or service being produced.
B
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Refer to Figure 4-6. What is the value of producer surplus after the imposition of the price floor?
A) $3,000 B) $3,600 C) $4,200 D) $4,500
Which of the following is part of the secondary market?
A) the over-the-counter market B) NASDAQ C) New York Stock Exchange D) all of these
Current account surpluses are offset by
A) the liquidity balances. B) capital account deficits. C) unilateral transfers. D) balance of trade surpluses.
Gas stations can price the products that they sell in their convenience store a little bit higher because
a. these products are usually complements to the gas sales and the demand for gas is inelastic b. these products are usually complements to the gas sales and the demand for gas is elastic c. these products are usually substitutes to the gas sales and the demand for gas is inelastic d. these products are usually substitutes to the gas sales and the demand for gas is elastic