An In the News article, "Too Many Sellers: The Woes of T-Shirt Shops," states that if T-shirt shops are perfectly competitive firms, then each shop
A. Is a price taker.
B. Confronts a downward-sloping demand curve for its own output.
C. Is a price setter.
D. Has market power.
Answer: A
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The formula for the multiplier is (1 - MPC)
Indicate whether the statement is true or false
Long-run equilibrium for a monopolistic competitor is characterized by
A) a price exceeding marginal cost. B) marginal cost pricing. C) economic profits. D) too few firms in the industry.
A country's government runs a budget deficit when which of the following occurs in a given year?
A) The amount of new loans to developing nations exceeds the amount of loans paid off by developing nations B) Government spending exceeds tax revenue C) The debt owed to foreigners exceeds the debt owed to the country's citizens D) The amount borrow exceeds the interest payment on the national debt E) Interest payments on the national debt exceed spending on goods and services
Opportunity cost is a theoretical concept with no practical application.
Answer the following statement true (T) or false (F)