Which of the following statements is true regarding the difference between a monopolist and a perfectly competitive firm?
a. Competitive price is higher than the price charged by a monopolist.
b. Supply of output is higher in case of a monopoly than if the market is competitive.
c. A monopoly can choose its price while a competitive firm is a price taker.
d. A market characterized by competition has a higher deadweight loss.
C
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Starting from long-run equilibrium, a large increase in government purchases will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; potential B. recessionary; higher; potential C. recessionary; lower; lower D. expansionary; higher; higher
How is the foreign exchange market similar to the stock market?
What will be an ideal response?
If a country has a comparative advantage in wine moved from autarky to free trade, this would cause what reaction in the world market?
A. Foreign wine producers would be opposed. B. Domestic wine consumers would be opposed. C. Domestic wine producers would be opposed. D. Domestic wine consumers would not be influenced.
Employers choose to offer efficiency wages because:
A. they give employees an incentive to work hard to keep their jobs. B. it will reduce turnover, saving the employer time and money to hire and train new workers. C. it has proven to make workers more productive. D. All of these are true.