Firms in perfectly competitive markets take the ______ as given when deciding how much to sell.
A. market quantity
B. lowest prices
C. market prices
D. input prices
C. market prices
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The interest-rate effect is the impact on real GDP caused by the ____ relationship between the price level and the interest rate
a. direct b. independent c. linear d. inverse
Monopolistic competitors and perfect competitors are alike in: a. facing horizontal demand curves
b. earning zero economic profit in the short run. c. earning zero economic profit in the long run. d. relying on advertising to attract buyers to their products.
Supply chain is the entire vertical process of a firm
Indicate whether the statement is true or false
A price floor is a reasonable price control mechanism to impose in cases where the government believes the market's equilibrium price
a. creates an excess supply that will force price downward b. is too high c. creates an excess demand that will force price upward d. is too low e. is higher than the market price