In perfect competition, the product of a single firm
A) has many perfect complements in consumption produced by other firms.
B) is sold to different customers at different prices.
C) is sold under many differing brand names.
D) has many perfect substitutes in consumption produced by other firms.
Answer: D) has many perfect substitutes in consumption produced by other firms.
Explanation: Because all firms are assumed to produce identical products, the output of any particular firm is a perfect substitute in consumption for the output of any other firm.
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If a hospital is experiencing economies of scale,
a. its average cost curve is positively sloped as output increases. b. its average cost curve is negatively sloped as output increases. c. it should reduce its output level to lower costs. d. quality is falling as output is rising. e. both b and c are true.
Which of the following units is used to measure nominal GDP in the United States?
a. U.S. dollars b. gold c. percentages d. international monetary units e. units of physical goods and services
The most obvious benefit of specialization and trade is that they allow us to
a. work more hours per week than we otherwise would be able to work. b. consume more goods than we otherwise would be able to consume. c. spend more money on goods that are beneficial to society, and less money on goods that are harmful to society. d. consume more goods by forcing people in other countries to consume fewer goods.
The aggregate demand curve will shift to the right ________ the initial decrease in taxes
A) by less than B) by more than C) by the same amount as D) sometimes by more than and other times by less than