In order for a firm to face a perfectly elastic demand curve, it must
a. be a large firm selling a standardized product
b. be a small producer selling a standardized product
c. be a small producer; its product may or may not be standardized
d. be a large producer selling a non-standardized product
e. sell a standardized product, but the size of the firm is irrelevant
B
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The standard method of determining fair market value is called the comparable sales method
Indicate whether the statement is true or false
When producers are hard to monitor and marginal costs differ across producers, ________ are an effective method to achieve efficient use of a ________
A) individual transferable quotas; public good B) marginal private benefits; public good C) individual transferable quotas; common resource D) individual transferable quotas; excludable good
Countries that have indexed most contracts, wages, and interest rates to inflation have managed to sustain solid levels of economic growth for sustained periods with levels of inflation at ________, which would sound high by recent U.S. standards.
a. 10 percent to 30 percent per year b. 30 percen to 40 percent per year c. 5 percent to 10 percent per year d. 40 percent to 50 percent per year
If the price elasticity of supply is 1.5, and a price increase led to a 3% increase in quantity supplied, then the price increase is about
a. 0.2%. b. 0.5%. c. 2.0%. d. 4.5%.