The only firms that do not have market power are
A) firms in industries with low barriers to entry.
B) firms that do not advertise their products.
C) firms in perfectly competitive markets.
D) firms that sell identical products.
Answer: C
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In a market economy,
a. supply determines demand and demand, in turn, determines prices. b. demand determines supply and supply, in turn, determines prices. c. the allocation of scarce resources determines prices and prices, in turn, determine supply and demand. d. supply and demand determine prices and prices, in turn, allocate the economy's scarce resources.
The product of ____________________ and _________________ is equal to the total amount of spending in an economy
A) the money supply; the price level B) velocity; the price level C) the money supply; velocity D) velocity; the level of output
An increase in the supply of the product implies:
A. producers will now charge a higher price for a given quantity of output. B. the supply curve will shift to the left. C. the price of this product has increased. D. producers will now charge a lower price for a given quantity of output.
What caused the decline in demand for red delicious apples?
A. Consumers found them to be tasteless. B. More varieties to choose from. C. Transportation issues. D. Genetic manipulation scared consumers.