A market in which many firms sell identical products is
A) a monopoly.
B) an oligopoly.
C) only perfectly competition.
D) only monopolistic competition.
E) both perfect competition and monopolistic competition.
C
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Suppose the Fed wants to fix the U.S. dollar/Mexican peso rate at 11 pesos per dollar under a fixed exchange rate policy. If the exchange rate falls to 10 pesos per dollar, the Fed can
A) buy dollars. B) sell dollars. C) attempt to freeze all sales of dollars. D) any of the above actions could take place.
Which of the following statements is correct?
A) The markup pricing rule that is derived from the rule for profit maximization can be used as a substitute for determining the profit-maximizing level of output by equating marginal revenue and marginal cost. B) It is reasonable to assume that a profit-maximizing firm will never operate in the inelastic portion of its demand curve. C) The ability of a profit-maximizing firm to mark up price above average cost is unaffected by the price elasticity of demand for the firm's output. D) The markup factor and the price elasticity of demand are positively related, i.e., as the price elasticity of demand increases, the markup factor that the profit-maximizing firm can apply to its marginal cost in setting price increases as well.
The concept that explains the firm's ability to produce output with differing bundles of resources is called
a. Resource heterogeneity b. Resource immobility c. Barriers to entry d. Imitability
In an open economy, the demand for loanable funds comes from both domestic investment and net capital outflow
a. True b. False Indicate whether the statement is true or false