When new firms enter the perfectly competitive Miami bagel market, the market
A) supply curve shifts leftward.
B) supply curve does not change.
C) demand curve shifts rightward.
D) supply curve shifts rightward.
E) demand curve shifts leftward.
D
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The present discounted value of $100 to be received one year from now, if the interest rate is 2.5 percent, is closest to
A. $98. B. $95. C. $103. D. $100.
Open and explicit agreements concerning pricing and output shares transform an oligopoly into a
A. Differentiated oligopoly. B. Monopoly. C. Perfectly competitive firm. D. Cartel.
Changes in demand will often be met with changes in output rather than changes in prices because of formal and informal contracts.
Answer the following statement true (T) or false (F)
Which of the following is NOT a characteristic of a perfectly competitive industry?
A) There are large numbers of buyers and sellers. B) The firms in the industry produce a homogeneous product. C) Sellers have better information about the product than consumers. D) Any firm can enter or leave the industry without serious impediments.