Is the firm a perfect competitor or an imperfect competitor? Explain.
A perfect competitor sells entire output at constant price.
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A negative externality is an example of market failure. The root of the problem lies in the definition and enforcement of property rights. Explain
What will be an ideal response?
Suppose you were competing in a sealed-bid, second-price auction for a Vermeer painting, which you happen to value at $100,000 . What bid should you submit?
a. Exactly $100,000 b. Somewhat lower than $100,000 depending on the number of other bidders c. Somewhat higher than $100,000 depending on the number of other bidders d. Cannot say which of a, b, or c is right without further information
What happens when supply increases and demand does not change
What will be an ideal response?
The marginal propensity to save (MPS) is
A. the percentage of an additional dollar of real disposable income that will go toward additional real savings. B. the percentage of real disposable income saved. C. the rate at which real savings changes over time. D. the difference between the amounts of real disposable income consumed and saved.