In a perfectly competitive market, an individual ________ has ________ influence over the market price of the good or service being sold
A) buyer; basically no
B) seller; basically no
C) buyer; a great deal of
D) seller; a great deal of
E) Both A and B are correct.
E
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When a demand schedule is drawn as a graph,
a. price is measured on the vertical axis. b. quantity is measured on the horizontal axis. c. the resulting curve has a negative slope. d. the other variables (besides price and quantity) are held constant. e. All of the above are correct.
If the price of inputs falls and the government deficit rises:
a. Aggregate demand rises, and aggregate supply falls. b. Aggregate demand rises, but aggregate supply does not change. c. Aggregate demand falls, and aggregate supply rises. d. Aggregate demand and aggregate supply rise.
The ratchet effect means that:
A. when aggregate demand increases, the price level remains constant. B. when aggregate supply decreases, the price level increases. C. when aggregate supply increases, the price level decreases. D. when aggregate demand decreases, the price level remains constant.
If the demand for a monopolist's product increases, its
A. marginal revenue decreases, making it more profitable to hire more workers. B. marginal revenue increases, making it more profitable to hire more workers. C. marginal revenue increases, making it more profitable to hire fewer workers. D. marginal revenue decreases, making it more profitable to hire fewer workers.