One of the defining characteristics of a perfectly competitive market is
a. a small number of sellers.
b. a large number of buyers and a small number of sellers.
c. a similar product.
d. significant advertising by firms to promote their products.
c
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The relationship between income and consumption illustrated in the figure above is
A) positive and linear. B) positive and nonlinear. C) negative and linear. D) negative and nonlinear.
Unplanned inventory decreases prompt firms to cut back on production until equilibrium output is restored
a. True b. False Indicate whether the statement is true or false
Which of the following would increase the demand for U.S. dollars in the foreign exchange market?
a. the spending of U.S. tourists in France b. the purchase of Japanese automobiles by American consumers c. the sale of U.S. computer equipment to a Canadian buyer d. the purchase of a Mexican shoe factory by a U.S. investor
If the U.S. dollar buys 50 Japanese yen, and 50 yen buy 75 Russian rubles, and 75 rubles buy 300 Israeli shekels, and the exchange rate of the dollar for the shekel is below 300,
a. there is an arbitrage opportunity b. the demand for all currencies (yen, ruble, shekel, dollar) will increase c. the market is in equilibrium d. the supply of all currencies (yen, ruble, shekel, dollar) will increase e. there is no possibility for arbitrage