Because each perfectly competitive firm sells a product identical to that of the other firms
A) each firm tries to cut prices to increase its market share.
B) each firm's output is a perfect substitute for the output of any other firm.
C) each firm expects to earn some economic profit.
D) the demand for each firm's product is perfectly inelastic.
B
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On January 1, 2006, a consumer borrowed $10,000 for a term of one year at an interest rate of 12 percent. How much principal and interest will the consumer pay back on January 1, 2007?
A. $10,000 B. $1,200 C. $8,929 D. $11,200
Which of the following is a correct statement?
A) Inflation is measured as the percentage change in the CPI. B) The CPI is a widely used measure of the inflation rate. C) Real GDP is our best measure of economic growth. D) The PPI measures inflation as experienced by producers.
Refer to the information for this hypothetical economy provided in Table 20.2 below to answer the question(s) that follow.Table 20.2 2014 2015 2016QuarterIIIIIIIVIIIIIIIVIIIIIIIVOutput98949010210510811010397949090Refer to Table 20.2. We would expect the period from after the fourth quarter of 2014 until before the third quarter of 2015 to be categorized as a period of
A. low inflation. B. low unemployment. C. high unemployment. D. low production.
Assume that the market for corn is perfectly competitive. Currently, firms growing corn are generating losses. In the long run, we can expect
A. new firms to enter, causing the market price of corn to decrease. B. some firms to exit, causing the market price of corn to increase. C. some firms to exit, causing the market price of corn to decrease. D. new firms to enter, causing the market price of corn to increase.