Which of the following is not necessarily a characteristic of a perfectly competitive market structure?
a. ?Easy entry and exit in the long run
b. ?Low prices
c. ?Perfect information
d. ?A homogeneous product
e. ?A large number of buyers and sellers
Ans: b. ?Low prices
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Inflationary pressures caused the FOMC to increase the federal funds rate by ¼ of a percentage point in June 2004, and by exactly the same amount at every subsequent FOMC meeting through June of 2006. Theses actions
A) caused an upward movement along the monetary policy curve. B) caused a downward movement along the monetary policy curve. C) shifted the monetary policy curve upward. D) shifted the monetary policy curve downward.
Which of the following conditions indicate cost minimization, assuming two inputs, labour (L) and capital (K)?
a) MPL = MPK b) MPK/PL = MPL/PK c) PK · MPK = PL · MPL d) PK = PL e) MPK/PK= MPL/PL
The Coase theorem is reliant on ______ property rights.
a. club b. public c. undefined d. well-defined
The incentive to charge a low price even though it leads to lower profits in Figure 8.9 is an example of:
A. the duopolists' dilemma. B. tying products. C. scarcity and choice. D. the economic problem.