Which of the following statements is true regarding perfect competition?
a. A perfectly competitive market only exists in the agricultural market.
b. A perfectly competitive market is a hypothetical extreme.
c. There are many examples of perfectly competitive markets in different industries.
d. Perfectly competitive markets are the opposite of price takers.
b. A perfectly competitive market is a hypothetical extreme.
A perfectly competitive market is a hypothetical extreme; however, producers in a number of industries do face many competitor firms selling highly similar goods, in which case they must often act as price takers.
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Goods and services that the United States buys from other nations are called
A) exports. B) imports. C) bartered goods. D) exchanges. E) world goods.
If the resource market is perfectly competitive:
a. the market demand for the resource is perfectly elastic. b. the market demand for the resource is perfectly inelastic. c. the suppliers can affect the input price by increasing or reducing their supply. d. the input price to each firm is constant. e. the supply of the resource is perfectly inelastic.
Price-fixing agreements among competing firms are a violation of the Clayton Antitrust Act
a. True b. False
Since the 1960's, consumer spending in the U.S. has been approximately ________ percent of disposable income, whereas saving has been approximately ________ percent of disposable income
a. 30; 70 b. 50; 50 c. 65; 35 d. 90; 10