If a perfectly competitive firm is a price taker, then _____
a. pressure from competing firms will force it to accept the prevailing market price
b. it will be a relatively large player compared to its competitors in the overall market
c. it will increase or decrease its output to vary the total quantity supplied in the market
d. quality differences will be very perceptible and will play a major role in consumers' decisions
a
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Inflation is known as a ________ because it ________
A) tax; redistributes goods and services from households and businesses to the government B) revenue; is the only source of business income for the government C) good thing; keeps the value of goods and services increasing D) bad thing; allows people to obtain the wrong kind of wealth E) tax; redistributes goods and services from the government to households and businesses
Refer to Scenario 12.1. Suppose that a third friend, Ryan, joins Simon and Paula on their way home from school, and this reduces the probability of any particular individual from stepping forward to help the man being attacked from 70% to 40%
What is the probability of either Simon, Paula, Ryan, or any combination of the three trying to rescue the man? A) 28.8% B) 49.6% C) 78.4% D) 93.6%
When the wage rate rises, the substitution effect leads a worker to
a. increase consumption while the income effect leads to a decrease in consumption. b. decrease consumption while the income effect leads to an increase in consumption. c. increase consumption, as does the income effect. d. substitute sleep for other leisure.
Other things constant, an increase in the demand for motorcycles will
a. decrease the price of motorcycles. b. decrease the quantity of motorcycles bought and sold. c. decrease the demand for motorcycle workers and lower their wages. d. increase the demand for motorcycle workers and increase their wages.