The basic characteristics of a pure capitalist system include the private ownership of the means of production and economic activity being coordinated through a system of markets and prices
a. True
b. False
Indicate whether the statement is true or false
True
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Refer to Figure 3-1. An increase in the price of a substitute would be represented by a movement from
A) A to B. B) B to A. C) D1 to D2. D) D2 to D1.
Long-run elasticity of supply is defined as:
a. percentage change in quantity demanded in the long run divided by percentage change in price. b. percentage change in price divided by percentage change in quantity demanded in the long run. c. percentage change in quantity supplied in the long run divided by percentage change in price. d. percentage change in price divided by percentage change in quantity demanded in the long run.
Which of the following characteristics of perfect competition does not apply in monopolistic competition?
A. Free entry and exit B. Homogeneous products C. Numerous participants D. Perfect information
Consider a market for product X where 75 percent of the stores charge $500 and 25 percent charge $450. Compute the expected benefit from an additional search when the first search results in a price of $500.
A. $12.50 B. $50 C. $37.50 D. $500