All of the following conditions, except one, are satisfied when a perfectly competitive market is in short-run equilibrium. Which is the exception?
a. No firm is suffering an economic loss.
b. Each buyer purchases the quantity he wants at the market price.
c. Each seller produces the quantity she wants at the market price.
d. Suppliers want to sell the same quantity that buyers want to purchase.
e. The market coordinates the independent decisions of all the participants.
A
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The antitrust legislation that was designed to help small stores survive competition with large retail chains was the
a. FTC Act b. Sherman Antitrust Act c. Cellar-Kefauver Act d. Robinson-Patman Act e. Clayton Act
Which of the following would be most likely if firms in a competitive price-searcher market were earning economic profit?
a. Production inefficiencies would persist until the profit was eliminated. b. Firms would decrease their rate of output in the short run, causing a decline in profitability in the market. c. New firms would enter the market, resulting in fewer sales by existing firms. d. All firms in the market would continue to produce at their current levels and continue to charge the same price.
Adhering to a strict fixed exchange rate system means that
A. no country will experience inflation or recession. B. each nation improves control over its money supply. C. each nation loses some control of its monetary policy and its domestic economy. D. each nation improves control over its fiscal policy and aggregate demand.
Which of the following would NOT be a reason for a shift in the labor demand curve?
A. a change in labor productivity B. a change in the price of a related input C. a change in demand for the final product D. a change in the market wage rate