A buyer is said to be a price taker if she:
A) can bargain over the prices of the goods she consumes.
B) can purchase any amount of a good at a fixed price provided she has the money to pay for it.
C) always pays less than the market-determined price for the goods she is consuming.
D) ignores the prices of related goods and considers only the price of the goods she is purchasing.
B
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Suppose the firms in a monopolistically competitive market are incurring economic losses. What will happen to move the market to its long-run equilibrium?
A) More close substitutes will appear in the market until economic profits are zero. B) The firms that dropped out of the market will reenter once the level of economic losses is zero. C) Firms will continue to exit the market until economic losses are equal to zero. D) The demand functions of all the firms remaining in the market will become relatively more elastic.
When average variable cost is at its minimum, it is equal to the marginal cost of production at that level of output
Indicate whether the statement is true or false
Short-run supply determinants include
A. Number of buyers. B. Consumer preferences. C. Technology. D. Income.
The operational components required for truly independent central banks include:
A. the chairperson of the bank being answerable only to the President. B. the ability to have policies reversed. C. monetary policies that cannot be reversed by anyone outside of the central bank. D. a budget controlled by Congress.