One requirement for an industry to be perfectly competitive is that in the industry there
A) are a few firms who control the market.
B) are many firms for whom the efficient scale of production is small.
C) is one firm that sells a product with no close substitutes.
D) are many firms selling different products.
E) is a barrier to entry that makes the entry of new firms difficult.
B
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Shirley has to choose between a two-day trip and a three-day trip to Hollywood. The table below shows the expected benefit and cost for the different days
Using optimization in levels and optimization in differences, determine what Shirley's optimum decision should be. Does the decision differ with the techniques used? Which technique is faster to implement? Day Cost Benefit 1 $750 $800 2 $900 $1,000 3 $600 $800
The cross-price elasticity of demand is
a. price elasticity of demand multiplied by the income elasticity of demand b. the percent change in the price of one commodity with respect to a one-percent change in the quantity demanded of another commodity c. the percent change in the demand for one commodity with respect to a one-percent change in the price of another commodity d. negative for substitute goods e. price elasticity of demand crossed with consumer incomes
Growth in potential GDP depends on
a. the labor force growth rate, capital stock growth rate, and rate of technical progress. b. government spending, growth in prices, and labor productivity. c. cyclical fluctuations and growth in the capital stock. d. growth in real GDP, nominal GDP, and the population.
One of the two reasons why we are driven to buy and sell goods and services in the market is that most of us are incapable of producing everything we want to consume.
Answer the following statement true (T) or false (F)