Which of the following statements does not describe a perfectly competitive market?
A) A large number of firms are involved.
B) Entry and exit are relatively easy.
C) In the short run firms can earn profits, minimize losses, or earn a normal profit.
D) Price is greater than marginal revenue.
Answer: D) Price is greater than marginal revenue.
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A bilateral negotiation is a bargaining mechanism in which:
A) a third party or an authority intervenes and decides the prices of the products traded in a market. B) a single seller and a single buyer confront one another with bids and asks. C) multiple buyers bargain with a single seller to determine the trading price. D) multiple sellers bargain with a single buyer to determine the trading price.
Refer to Table 2-18. Which of the following statements is true?
A) Mickey has a comparative advantage in making both products. B) Minnie has a comparative advantage in making both products. C) Minnie has a comparative advantage in making hats and Mickey in making umbrellas. D) Mickey has a comparative advantage in making hats and Minnie in making umbrellas.
_____________ is a financial arrangement whereby people pay premiums tp a(an) ____________ company that reimburses them in the event of loss or injury
a. Stock b. Mutual Fund c. Insurance d. Investiture
Other things remaining unchanged, a decline in imports is associated with an increase in gross domestic product
a. True b. False Indicate whether the statement is true or false