Hogrocket, which developed the Tiny Invaders game for the iPhone, found that to maintain sales in a profitable competitive market, the price of a product
A) will usually rise.
B) will usually fall.
C) will usually remain stable.
D) will eventually fall to zero.
Answer: B
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The firm in a perfectly competitive industry
a. is a price-taker b. is a price-maker c. attempts to differentiate his/her product through advertising d. will earn an economic profit in the long run e. can charge any price it wishes
Unlike recent events in England, the United States has no recent history of bank failures
a. True b. False Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. In a perfect competition, profits continue indefinitely. 2. Patents allow firms to price their products below marginal costs. 3. The equilibrium price is the same whether a firm has a monopoly or is engaged in perfect competition. 4. Monopolists stop producing when price exceeds marginal cost. 5. Monopoly profits are inefficient.
The Fed does not tightly control the monetary base because it does NOT completely control
A) open market purchases. B) open market sales. C) borrowed reserves. D) the discount rate.