One of the defining characteristics of a perfectly competitive market is
a. a small number of sellers
b. a large number of buyers and a small number of sellers
c. a standardized product
d. significant nonprice competition among firms
e. an inefficient information system
C
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The selling price of a property is $96,000. This can be financed if the buyer can put 10 percent down and pay a loan origination fee of 1.5 percent. How much cash must the buyer produce to complete this transaction?
A) $10,080 B) $10,896 C) $11,040 D) $11,084
A price ceiling represents
A. a minimum price that can be legally charged for a good or service. B. a first come, first served mechanism for controlling prices. C. a maximum price that can be legally charged for a product or service. D. a lottery imposed upon producers by the government.
The production possibilities frontier shows
A) the various products that can be produced now and in the future. B) the maximum attainable combinations of two products that may be produced in a particular time period with available resources. C) what an equitable distribution of products among citizens would be. D) what people want firms to produce in a particular time period.
Marginal cost pricing means that a firm charges
A. A price that is marginally lower than the average total cost of production. B. Any price as long as average total cost is greater than marginal cost. C. A price that is marginally higher than the average total cost of production. D. A price that is equal to the marginal cost of production.