A necessary condition for "perfect competition" is
A) price searchers.
B) price takers.
C) legal restrictions on entry into the market.
D) a small number of huge firms.
E) widespread and long-run economic profits.
B
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Suppose all firms in the market have the same costs as illustrated above. Of the following, which is the most likely action for a manager of the firms to take?
A) Increase the price of their grain.
B) Shut down.
C) Advertise their product.
D) Attempt to keep other firms from entering the market.
Adverse selection is
a. when people act differently because they are insured b. when more risk averse people want to be insured more c. when people at a greater risk want to be insured more d. when your guess at a test question is wrong
An economy eliminates a recessionary gap by reducing wages and prices
a. True b. False Indicate whether the statement is true or false
If the technology, the nature of competition, or the regulatory environment change in an industry, then
A. the organizational architecture will be able to restore the former market environment. B. a good organizational architecture will shut down. C. the appropriate organizational architecture will change too. D. the industry will increase production.