In perfect competition, P = MC is the condition that
A. holds only in the long run.
B. encourages firms to enter an industry.
C. guarantees that firms will make an economic profit.
D. ensures that firms produce the right things.
Answer: D
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The market demand curve is the vertical summation of all individual demand curves.
Answer the following statement true (T) or false (F)
A positive temporary supply side shock will:
A. increase the level of potential output in the long run. B. decrease the price level in the long run. C. increase the price level in the long run. D. have no effect in the long run.
A market in which the entire demand for a good or service can be satisfied at the least cost by a single firm is a:
A. horizontal market. B. natural monopoly. C. contestable market. D. perfect market.
The EU Emission Trading Scheme created a market for
A) permits to emit greenhouse gases. B) crude oil. C) wind energy. D) devices that lower the global temperature.