An industry with a large number of small firms producing a standardized product in a market with easy entry and exit of firms is:
What will be an ideal response?
perfectly competitive.
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When an average cost pricing rule is imposed on a natural monopoly, ________
A) total surplus is maximized and the monopoly incurs an economic loss B) the monopoly makes zero economic profit C) the monopoly makes an economic profit D) total surplus is maximized and the monopoly makes an economic profit
The excise tax on gasoline is an example of a tax based on the ability-to-pay principle
a. True b. False
The curve that shows the relationship between the price of a good and the quantity that consumers are willing to purchase at each price is the
a. supply curve. b. demand curve. c. production possibilities curve. d. consumption curve.
Disposable personal income equals personal income
A) minus personal tax payments. B) plus government transfer payments. C) minus personal tax payments plus government transfer payments. D) minus government transfer payments plus personal tax payments.