A perfectly competitive firm is a “price taker” because it cannot sell its product for more than the market price.
Answer the following statement true (T) or false (F)
True
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Monopolistic competition is a market structure characterized by many small firms selling a homogeneous product.
Answer the following statement true (T) or false (F)
Refer to the figure below:
If price is $16 there is
A. a shortage of 250 units. B. equilibrium in the market. C. a shortage of 125 units. D. a surplus of 250 units. E. a surplus of 125 units.
Which of the following is not a characteristic of a perfectly competitive market?
A. Perfect information. B. High barriers to entry. C. Zero economic profit in the long run. D. Homogeneous products.
China runs a current account surplus with the United States. Which of the following must be true about China's balance of payments with the United States?
A) Its net exports must be negative. B) It must run a financial account deficit. C) Its balance of payments must run a deficit. D) Its balance of trade must be in deficit.