The perfectly competitive market structure benefits consumers because
A) firms do not produce goods at the lowest possible price in the long run.
B) firms are forced by competitive pressure to be as efficient as possible.
C) firms add a much smaller markup over average cost than firms in any other type of market structure.
D) firms produce high-quality goods at low prices.
Answer: B
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Over the past two decades, the unemployment rates in
A) the Eurozone have been generally less than U.S. unemployment rates. B) the Eurozone have been generally greater than U.S. unemployment rates. C) the United Kingdom have almost always been much greater than the U.S. unemployment rates. D) Canada are less than the U.S. unemployment rates. E) Japan are much larger than those in the United States.
A demand curve is a graphical representation of
A) consumer tastes. B) national income. C) the demand schedule. D) relative prices.
In the following question you are asked to determine, other things equal, the effects of a given change in a determinant of demand or supply for product X upon (1) the demand (D) for, or supply (S) of, X; (2) the equilibrium price (P) of X; and (3) the equilibrium quantity (Q) of X. An increase in income, if X is a normal good, will:
A. increase D, increase P, and increase Q. B. increase D, increase P, and decrease Q. C. decrease D, increase P, and increase Q. D. increase S, increase P, and increase Q.
Claire has just eaten her second bowl of cereal. We can say:
A. her third bowl will likely decrease her total utility. B. her second bowl likely reduced her total utility. C. her second bowl likely added less to her total utility than the first. D. her third bowl will likely increase her total utility by at least as much as the second.