A teenaged babysitter is similar to a firm in a perfectly competitive industry in that, for both
A) fixed costs are lower than variable costs.
B) there are many other suppliers of similar goods or services.
C) the implicit costs of production exceed the explicit costs of production.
D) average costs of production do not change when their industry expands.
Answer: B
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The Keynesian view that demand could fall short of production is more likely to hold true if
a) wages and prices are fully flexible b) prices, but not wages, are full flexible c) wages and prices are not fully flexible d) wages, but not prices, are fully flexible
If the supply of money increases, the long-run aggregate supply curve suggests that output will not change but the price level will
Indicate whether the statement is true or false
Which of the following is not prohibited by the Clayton Act, even if it reduces competition?
a. merger accomplished through the acquisition of another firm's stock b. merger accomplished through the acquisition of another firm's assets c. price discrimination that cannot be justified on the basis of cost differences d. exclusive dealing contracts e. interlocking directorates
Per capita income is calculated by
a. income growth – population growth b. income growth × population growth c. income growth/population growth d. income/population e. income growth + population growth