In perfectly competitive markets, products are ______ and sellers are ______.
a. homogeneous; price takers
b. homogeneous; price searchers
c. substantially different; price takers
d. substantially different; price searchers
Ans: a. homogeneous; price takers
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Comparative advantage implies that you
A) can produce more units of a good or service than another. B) can produce a good or service at a lower opportunity cost. C) can produce goods with more capital resources. D) can produce goods with more human resources.
Suppose that the price of a coffee mug is $2. Lee's marginal cost of producing coffee mugs $0.50 for the first mug, Tammy's marginal cost of producing coffee mugs is $1 for the second mug, Stan's marginal cost of producing coffee mugs is $1.50 for the third mug, Joy's marginal cost of producing coffee mugs is $2 for the fourth mug, and Jody's marginal cost of producing coffee mugs is $3 for the fifth mug. In equilibrium, what is the producer surplus from producing coffee mugs?
A. $0 B. $2 C. $3 D. $6
What are the four components of aggregate demand?
What will be an ideal response?
When you buy a corporate bond, you are
A. borrowing funds from the corporation. B. lending funds to the corporation. C. selling an ownership right in the corporation. D. acquiring an ownership right in the corporation. E. b and d