Firms in perfect competition are price takers because
A) each firm is too small relative to the market to be able to influence price.
B) one firm determines the price that all other firms in the industry will charge.
C) firms accept the price determined by the government.
D) consumers have enough market power to set prices.
A
You might also like to view...
If a country experiences deflation, its currency will increase in value relative to its trading partners, ceteris paribus
Indicate whether the statement is true or false
Public goods, as defined in economics, are a.. goods that are provided by the government b. overprovided because of their public nature c. provided efficiently in competitive markets but at too low a level d. subject to free-rider problems e. characterized by rivalry and nonexclusiveness
In 2003, which of the following currencies was used in Iraq?
a. Swiss dinar b. Saddam (or print) dinar c. American dinar d. Swiss dinar and Sad dam (or print) dinar
Economists estimate that ________ of U.S. currency is outside the United States and held primarily by ________
A) over half; households and firms in countries where there is little confidence in the local currency B) over half; foreign banks and foreign governments C) less than one quarter; households and firms in countries where there is little confidence in the local currency D) less than one quarter; foreign banks and foreign governments