Give an example of a competitive market.
What will be an ideal response?
Should show a thorough understanding of a competitive market. For example, companies that make tennis racquets, such as Wilson, Head, and Babolat, are involved in a competitive market. All of these sellers are selling similar products. Consumers want to buy similar products, namely a good tennis racquet for a reasonable price. Buyers for firms need to purchase similar materials for their products. As a result, no single buyer or seller can influence the market price.
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If the price elasticity of demand is unit elastic, a 10 percent increase in price will result in a 10 percent increase in revenue
Indicate whether the statement is true or false
The bargaining power of an LDC government in negotiating with a TNC is greatest when
a. it has large amounts of labor available b. it has a large market for a product c. it has a resource that few other countries have d. it can offer large tax breaks e. none of the above
The difference in values between money today and money in the future is lower when the rate of interest is higher
a. True b. False Indicate whether the statement is true or false
The impact of one person's actions on the well-being of a bystander is called
a. an economic dilemma. b. deadweight loss. c. a multi-party problem. d. an externality.