If the demand increases in a perfectly competitive market, the price will:
A. temporarily decrease.
B. increase permanently.
C. decrease permanently.
D. temporarily increase.
Answer: D
You might also like to view...
In terms of exposing others to risk, explain if there is a difference between you choosing to text while driving
and a company selling tablet computers where the batteries have been known to explode when the tablet is left on for a long period of time.
If the interest rate is 7% and the tax rate is 15%, what is the after -tax cost of capital for the firm?
What will be an ideal response?
When a new firm considers entering a market, it takes into account only the profit it would make. What are the two external effects that occur in the market that the firm does not consider?
Say you are the owner of a Pizza place. You know that when you produce 10 pizzas, the average product of each of your workers is 10, and the marginal product of your last worker is 15. From this information you know that
A. the average product is increasing. B. the average product is decreasing. C. the marginal product is decreasing. D. the marginal product is increasing.