Which of the following offers a good example of a perfectly competitive market?
a. The market for postal services in the U.S.
b. The market for luxury cars in the U.S.
c. The market for water and sewer services in most U.S. towns and cities
d. The market for basic commodities such as wheat, corn, and livestock
d
You might also like to view...
"When the cost of producing a unit of a good falls because the firm uses specialized resources to produce a range of goods and services" is the definition of
A) economies of scope. B) economies of scale. C) economic efficiency. D) technological efficiency.
If at an output of 10 units a monopolist is earning a positive profit, marginal revenue is $6, and marginal cost is $4, then the monopolist:
a. is in equilibrium. b. should increase output. c. should reduce output. d. should lower the price at the current output level. e. should raise the price at the current output level.
An increase in government spending causes:
a. Aggregate supply to rise, which reduces the nation's average price level and increases real GDP. b. Aggregate demand to rise, which increases the nation's average price level and reduces real GDP. c. Always causes the passive deficit to rise. d. Aggregate supply to rise, which reduces the nation's average price level and reduces real GDP. e. Aggregate demand to rise, which increases the nation's average price level and increases real GDP.
Consider the US market for chocolate, a market in which the government has imposed a price ceiling. Which of the following events could convert the price ceiling from a nonbinding to a binding price ceiling? a. a government study that shows that consuming chocolate increases the incidence of cancer. b. a large increase in the size of the cocoa bean crop; cocoa beans are used to produce
chocolate. c. South American cocoa bean producers refuse to ship to chocolate producers in the US. d. a sharp drop in consumer income; chocolate is a normal good.