Individual firms in a perfectly competitive market can
a. purchase all they want at the market price
b. sell all they produce at the market price
c. earn more profit if they charge a price above the market price
d. earn more profit if they charge a price below the market price
e. earn no profit in the short run
B
You might also like to view...
A decrease in price level will
A) shift the planned expenditures curve upward. B) cause a movement up along the planned expenditures curve. C) shift the planned expenditures curve downward. D) cause a movement down along the planned expenditures curve.
Actions that reduce trade restrictions and promote free trade are often referred to as:
A. trade liberalization. B. trade protectionism. C. free trade politicism. D. autarky.
Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What happens to supply of money if the interest rate increases?
a. It increases. b. It decreases. c. It does not change. d. Uncertain-economic theory has no answer to this question.
If the supply schedule for a product has an upward slope and the price of that product declines from $100 to $75, the:
a. Quantity supplied of the product will increase b. Quantity supplied of the product will decline c. Supply of the product will shift to the right d. Supply of the product will shift to the left