Which of the following is a characteristic of a competitive price-taker market?
A. Profit maximizing firms in the market will expand output until price equals average variable cost.
B. The market demand curve for the product is a horizontal line.
C. There are many firms in the market, each producing a small share of total market output.
D. The product produced by each of the firms is differentiated.
Answer: C
You might also like to view...
What is the reason that stabilization policies do NOT have an immediate effect on an economy?
A) Consumers are slow to catch up on spending. B) Imports come into the country too fast. C) Exports often are not shipped fast enough. D) There is a time lag for policies to take effect.
If NCNB Corp's deposits are $12.5 billion, its excess reserves are $100 million, and the reserve requirement is 10%, its actual reserves are
A. $100 million. B. $1.15 billion. C. $1.25 billion. D. $1.35 billion.
The California gold rush resulted in an increase in the amount of money in circulation and an increase in prices across the country
Indicate whether the statement is true or false
Refer to Figure 9.1. GMB and VolgaBus compete to sell 100 buses to MetroTravel, a city-owned bus company. If sealed bids are required and no illegal activities occur, what will be the outcome? Explain the process.
What will be an ideal response?