When new firms have an incentive to enter a competitive price-taker market, their entry will
a. increase the price of the product.
b. drive down profits of existing firms in the market.
c. shift the market supply curve to the left.
d. increase demand for the product.
B
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The big tradeoff between equality and efficiency exists because
A) redistribution uses resources and weakens incentives to work. B) redistribution uses resources and strengthens incentives to work. C) redistribution creates additional resources and weakens incentives to work. D) redistribution creates additional resources and strengthens incentives to work.
Antitrust problems rarely appear in competitive markets
Indicate whether the statement is true or false
"Competition is the great regulator." This statement reflects that
A) when competition is present, businesses have a strong incentive to serve the general public and therefore there is little need for regulation of competitive markets. B) government regulation is the key ingredient of competitive markets and therefore markets cannot be competitive without regulation. C) when markets are regulated by the government, there is no need for competition among business firms. D) extensive regulation is needed to assure that businesses will treat consumers properly and serve the interests of the general public.
An indifference curve represents combinations of two goods that provide an individual the same total utility.
Answer the following statement true (T) or false (F)