In the model of perfect competition,
A) all firms earn zero economic profit in the long run.
B) all firms use the lowest-cost technologies.
C) all firms take the prevailing market price as given.
D) all participants fully exhaust any potential gains from trade.
E) all of the above occur.
E
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From the perspective of economic theory, prices are basically
A) constant. B) information signals C) rising. D) rates of exploitation.
Perfect competition does not assume that
a. buyers are well informed about products and prices. b. free entry into and exit from the market exists. c. no individual buyer or seller can influence a price. d. all firms operate at the same cost.
If the real U.S. GDP was $10 trillion in 2000 and the U.S. population was 280 million, the per capita real GDP would have been closest to
A. $35,714 per person. B. $28,000 per person. C. $2,800 per person. D. $5,000 per person.
Lionel's Lawn Care is a company that maintains residential yards. Lionel's cost for his standard package of mowing, edging, and trimming is $15, and he charges $25 for this service. For a total price of $40, Lionel will also trim shrubs, a service that
adds an additional $10 to the total cost of the standard package. What is Lionel's marginal cost of adding the shrub-trimming service to the standard package? A) $10 B) $15 C) $25 D) $40