To have competition as economists define it,
A. you need many firms in an industry, with no one firm having any influence over price.
B. you need a couple of firms in the industry, with each having significant influence over the price.
C. you need many firms in an industry, and it doesn't matter if one firm has influence over price.
D. All of these statements are true.
A. you need many firms in an industry, with no one firm having any influence over price.
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A firm's minimum efficient scale is the largest quantity of output at which long-run average cost reaches its highest level
Indicate whether the statement is true or false
In the Solow growth model, an increase in the savings rate
A) raises steady state per capita output. B) raises the growth rate in aggregate output. C) must reduce per capita consumption. D) must reduce the standard of living.
Everything else equal, an increase in the demand for labor will
a. increase the real wage rate, employment, and real output b. reduce the real wage rate, employment, and real output c. increase the real wage rate but decrease employment and real output d. reduce the real wage rate but increase employment and real output e. increase the real wage rate and employment, but leave real output unchanged
What particularly important role do courts play in a market economy?