The definition of a price taker is:
A. having market power.
B. having government determine what you sell goods and services for.
C. being competitive.
D. having no control over the market price.
Answer: D
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The key disadvantage of the kinked-demand model is that it:
A) explains why firms may collude, but it does not explain how they interact. B) does not explain why prices may be rigid in an oligopoly. C) requires the assumptions of perfect competition. D) only holds under price leadership.
When labor usage is at 12 units, output is 36 units. From this we may infer that
A) the marginal product of labor is 3. B) the total product of labor is 1/3. C) the average product of labor is 3. D) none of the above
According to the efficient market hypothesis, rational people will not recognize that asset prices are rising too quickly.
Answer the following statement true (T) or false (F)
Whenever a firm's marginal costs are less than its average costs, its average costs must be:
a. falling. b. rising. c. constant. d. falling, then rising.