In perfect competition, no individual producer can significantly affect the market price because
a. the market is regulated by the government
b. each producer is ignorant of the market price
c. each producer provides a very small portion of the total market supply
d. strictly enforced collusion prevents any producer from acting independently
e. each firm's product is so different that there is no market price
C
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Which of the following is the most likely to cause the price of air travel to rise?
a. Lower prices and improved service in Amtrak (the nation's passenger railroad). b. Improved productive efficiency resulting from airline mergers. c. Higher airplane fuel costs. d. Reports that air travel safety is deteriorating.
In the classical model, what happens to the level of real GDP if aggregate demand increases?
A) Real GDP increases. B) Real GDP decreases. C) Real GDP would increase at first, then decrease. D) Real GDP would remain the same, at equilibrium.
A binding price ceiling causes quantity demanded to be less than quantity supplied
a. True b. False Indicate whether the statement is true or false
For a monopoly, the value of the next worker equals
A) MR ? MPL. B) p ? MPL. C) MPL. D) w/MPL.