A perfectly competitive firm is a "price taker" because it cannot sell its product for more than the market price
a. True
b. False
Indicate whether the statement is true or false
True
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Advertising has no effect on the demand schedule for a good.
Answer the following statement true (T) or false (F)
Figure36-9
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In Figure 36-9, the C + I + G + (X? IM)1 line is flatter than the C + I + G + (X? IM)0 line because the
A. (X? IM)1 line indicates that net exports decline as GDP rises. B. (X? IM)1 line indicates that net exports rise as GDP rises. C. multiplier is greater for the (X? IM)1 line. D. (X? IM)1 line indicates that tariffs, quotas, and other trade barriers are keeping net exports below their full potential.
If the government levies a $0.25 tax per MP3 music file downloaded on buyers of MP3 music files, then the price received by sellers of MP3 music files would
a. decrease by more than $0.25. b. decrease by exactly $0.25. c. decrease by less than $0.25. d. increase by an indeterminate amount.
If a 5 percent decrease in the price of a good results in a 20 percent increase in the demand for another good, what is the cross-price elasticity of demand?
a. +100 b. –15 c. +25 d. –4