Perfectly competitive markets tend to have a ______ number of sellers and a(n) ______ entry.
a. large; easy
b. large; difficult
c. small; easy
d. small; difficult
Ans: a. large; easy
You might also like to view...
For the simple case of a production function with two inputs in which the inputs are perfect complements, each isoquant is represented by:
A) a vertical line. B) a horizontal line C) a downward sloping straight line. D) a line that forms a right angle.
Which of the following is not a barrier to entry which leads to monopoly power
a. economies of scale b. control over key patents c. control of an essential resource d. government-imposed barriers to entry e. homogeneous product
Opportunity cost is best defined as the value of
a. all of the other possible options that the decision maker could have chosen. b. the alternative which the decision maker would choose if more resources were available. c. what is gained from the alternative which is chosen. d. resources that are given up to obtain the alternative that is chosen. e. the next best alternative that the decision forces one to give up.
If the Federal Reserve wished to increase interest rates using open market operations, it would
A. buy corporate stocks. B. buy US government securities. C. sell US government securities. D. buy gold.