Perfect competition
A) has many sellers.
B) homogenous products.
C) free entry and exit.
D) all of these choices.
D
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In which of the following situations, is a barrier to entry into a monopoly least likely to exist?
a. A large firm enjoys economies of scale. b. The tariffs on foreign goods are eliminated by the government. c. A company is the sole inventor of what it produces and no one else can make a good substitute. d. Government restrictions such as license requirements are enacted. e. A company is the only owner of an essential resource needed to produce its product.
If expected inflation is 12 percent and the publicly regulated electric utility company is legally limited to a 10 percent rate of return, then we should expect
a. increased investment by the utility. b. expansion of electric power generating capacity. c. future power shortages. d. excess investment by the electric utility.
Large firms are able to lower their costs by taking advantage of ___________________.
Fill in the blank(s) with the appropriate word(s).
If personal income exceeds national income in a particular year, we can conclude that:
a) transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and taxes on production and imports. b) the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits exceeded transfer payments. c) consumption of fixed capital and taxes on production and imports exceeded personal taxes. d) transfer payments exceeded the sum of Social Security contributions, corporate income taxes, and undistributed corporate profits.