It is a "given" that an individual firm selling in a perfectly competitive market will take the market price because
A. there are no good substitutes for the firm's product.
B. product differentiation is reinforced by extensive advertising.
C. the firm's demand curve is downward-sloping.
D. each producer supplies a negligible fraction of total market.
Answer: D
You might also like to view...
To an economist, theory can be thought of as
a. abstraction for the sake of argument. b. one person's opinion, which is just as good as another's. c. another term for the description of a situation. d. beliefs which cannot necessarily be verified. e. explanation of mechanisms behind observed phenomena.
An increase in the money supply, all else held constant, usually ________.
A. increases the interest rate and increases aggregate demand B. decreases the interest rate and increases aggregate demand C. increases the interest rate and decreases aggregate demand D. decreases the interest rate and decreases aggregate demand
A tax system that applies a lower marginal tax rate at higher levels of income is
A) progressive. B) regressive. C) proportional. D) flat.
A capital gains tax acts to
A) reduce the interest rate received by loan demanders. B) increase the interest rate received by loan demanders. C) increase the interest rate received by loan suppliers. D) reduce the interest rate received by loan suppliers.