Which of the following is true under conditions of pure competition?
A. There are differentiated products
B. The market demand curve is perfectly elastic
C. No single firm can influence the market price by changing its output
D. Each individual firm has the ability to set its own price
C. No single firm can influence the market price by changing its output
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A consumer goes to purchase a TV advertised for $300. As he is checking out, the clerk informs him of a $20 rebate offer for the TV, which he fills out and receives in 3 months. What can one can infer about the consumer's reservation price?
A. It was exactly $300. B. It was at least $300. C. It was at most $280. D. It was at least $280 but less than $300.
Which of the following represents a function of money?
A) standard of deferred payment B) medium of exchange C) unit of accounting D) all of the above
Comparative advantage is based on
A. capital costs. B. labor costs. C. dollar price. D. opportunity costs.
You have decided that you want to attend a renaissance fair as King Henry VIII. You estimate that it will cost $80 to assemble your costume. After spending $80 on the costume, you realize that the additional pieces you need will cost you $20 more. The marginal cost of completing the costume is
A. $20. B. $60. C. $80. D. $100.