Purely competitive firms are assumed to:
A. sell where marginal cost is minimized.
B. advertise.
C. be price takers.
D. confront demand curves that are perfectly inelastic.
Answer: C
You might also like to view...
Among the rationales for state owned enterprises is
(a) existence of monopoly. (b) the need for capital formation. (c) desirability of national control over strategic sectors of the economy. (d) all of the above. (e) none of the above.
According to traditional Keynesian economics, contradictory fiscal policy initiated by the federal government
An inequality trap has a negative impact on human capital development.
Answer the following statement true (T) or false (F)
Rational expectations economists believe that the potential effects of government policy changes are ______ addressed by households and firms.
a. slowly b. quickly c. unreasonably d. infrequently