Under perfect competition
A. no firm has any influence over price.
B. firms are price takers, not price makers.
C. many firms produce identical products.
D. All of the choices are true under perfect competition.
D. All of the choices are true under perfect competition.
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Which of the following shifts the supply curve of popcorn leftward?
A) a decrease in the price of popcorn B) an increase in the price of popcorn C) a technological development in the production of popcorn D) a decrease in the number of popcorn suppliers E) a decrease in the cost of producing popcorn
By and large, the price of each item on a restaurant menu is:
A) an accurate reflection of the item's marginal cost. B) based strictly on consumer demand. C) a function of cost and the price elasticity of demand for the item. D) a fixed multiple of the item's total cost.
The excess burden of a tax is
a. the amount by which the price of a good increases. b. the loss of consumer and producer surplus that is not transferred elsewhere. c. The amount by which a person's after-tax income decreases as a result of the new tax. d. the welfare costs to firms forced to leave the market due to an inward shift of the demand curve.
Market risk is:
a. The chance that financial assets cannot be sold quickly and without substantial loss of value. b. The chance of a change in the market value of a security due to changes in macroeconomic variables, such as interest rates or exchange rates. c. The risk that credit cannot be expanded by the banking system due to a central bank regulation. d. The chance that borrowers will be unable or unwilling to repay their debts.