The only decision that a perfectly competitive firm makes is:
a. what price to charge.
b. what quantity to produce.
c. how much to spend on advertisements.
d. how much to discriminate on the basis of price.
e. how to differentiate its products from its rivals.
b
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A market tends to be monopolistic if
a. The good has too many substitutes b. The good has very few substitutes c. There are too many rivals d. The good has too few complements
Contractionary monetary policy affects domestic income in a way that causes:
A. a fall in the value of the dollar. B. output to rise. C. exports to fall. D. imports to fall.
The central difference between the structural stagnation hypothesis and the secular stagnation theory is that:
A. structural stagnation applied in the 1940s, and secular stagnation applies today. B. structural stagnation focuses on globalization, while secular stagnation focuses on declining investment. C. structural stagnation focuses on declining investment, while secular stagnation focuses on globalization. D. structural stagnation is a hypothesis, while secular stagnation is a theory.
“Pure competition or pure monopoly industries will tend to be one-price industries. Monopolistic competition, however, is a multiprice industry.” Explain
What will be an ideal response?