In a perfectly competitive market, the number of sellers must be large enough that
a. none of them ever earns positive economic profits.
b. none of them can significantly alter the price of the product.
c. they each end up selling a slightly different product.
d. it is easy for a particular firm to leave the market.
B
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Fred spends all of his income on two goods: DVDs and downloaded music. If Fred's marginal utility per dollar from DVDs is greater than his marginal utility per dollar from downloaded music, Fred can ________ his total utility by buying ________
A) maximize; more DVDs and more downloaded music B) increase; more downloaded music and fewer DVDs C) increase; more DVDs and less downloaded music D) maximize; fewer DVDs and less downloaded music
Refer to the above table. If opportunity costs are constant and both countries produce only the goods for which they have comparative advantages and then trade, hourly world output would equal
A) 4 units of product A and 4 units of product B. B) 8 units of product A and 4 units of product B. C) 8 units of product A and 8 units of product B. D) 12 units of product A and 8 units of product B.
The rapid rise in oil prices during 2007-2008 can be explained by noting the fact that
a. the supply of oil increased more rapidly than the demand for oil increased b. the demand for oil increased more rapidly than the supply for oil increased c. the demand for oil decreased at the same time that the supply of oil increased d. the quantity demanded of oil increased more rapidly than the quantity supplied of oil increased e. the quantity supplied of oil increased more rapidly than the quantity demanded of oil increased
The fact that U.S. managers' salaries are substantially greater than those of comparable managers in Japan may be related to:
A. an increase in the demand for CEOs. B. the comparatively greater competitive markets in Japan. C. the greater number of public goods provided in the United States. D. an increase in the supply of CEOs.