A perfectly competitive firm:
A) can sell as much output as it wants at the equilibrium price.
B) must lower its price to sell more output.
C) can select the price for its output.
D) is a price maker.
Answer: A) can sell as much output as it wants at the equilibrium price.
You might also like to view...
In the recent Global Economic Crisis, the end of cash-out mortgage refinancing caused
A) LM curve to shift to the right. B) LM curve to shift to the left. C) IS curve to shift to the left. D) LM curve to shift to the right.
If the inflation rate is lower than expected, real income is redistributed from borrowers to lenders
a. True b. False
In the latter half of the 1990s, the Department of Housing and Urban Development imposed regulations on Fannie Mae and Freddie Mac, requiring them to
a. extend more mortgage loans to households with low and moderate incomes. b. accept only mortgages with at least a 20 percent down payment. c. tighten lending standards and increase their holdings of low-risk, conventional mortgages. d. extend more mortgage loans to households with middle and high incomes.
Which of the following statements is true?
A. Taxing the wealthy will lead to a more efficient economy. B. Taxing the poor will lead to a more equal distribution of income. C. A basic trade-off exists between the goals of equity and efficiency for a society. D. The forces of supply and demand will automatically lead to an equitable distribution of income.