Which requirement for perfect competition rules out trade associations or other collusive arrangements in which firms work together to influence price?
a. Freedom of entry and exit.
b. Homogeneity of product.
c. Perfect information.
d. Numerous small firms and customers.
d
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A change in the slope of a budget constraint indicates:
A) a change in the price of either good that causes a change in the opportunity cost. B) a change in the consumer's income. C) a change in the price of either good without a change in the opportunity cost. D) a change in the consumer's tastes and preferences.
How can a firm have a negative valued added, as supposedly some state-owned businesses did in the former Soviet Union? What has to be true for value added to be negative?
What will be an ideal response?
Which of the following conditions is not necessary for a firm to be able to engage in price discrimination?
I. The firm must be able to produce to the point at which price equals marginal revenue. II. The firm must easily be able to identify consumers with different demand elasticities. III. The firm must be able to prevent resale of the item it produces and sells. A) I only B) III only C) Both I and II only D) Both II and III only
In the late 1990s, the more than expected increases in tax revenues were the result of
a. rapid economic growth. b. rapid increases in the national debt. c. rising rates of inflation, and therefore, nominal incomes. d. rising balance of trade surpluses and the import duties they generated.