How does a perfect market influence output?
(A) Different firms each strive to make more goods and capture more of the market.
(B) Different firms make different amounts of goods, but some make a profit and others do not.
(C) Each firm makes its output as large as possible even though some goods are not sold.
(D) Each firm adjusts its output so that its costs, including profit, are covered.
Ans: (D) Each firm adjusts its output so that its costs, including profit, are covered.
You might also like to view...
"If an industry's Herfindahl-Hirschman Index is below 1,000, a merger between any two firms in that industry will be disallowed." Comment on the accuracy of the previous statement
What will be an ideal response?
Scalping at major sporting events is an example of
A) a surplus caused by the existence of price ceilings. B) the operation of rationing by the market. C) a black market caused by a price ceiling. D) a black market caused by a price floor.
The use of government taxation and expenditures to achieve macroeconomic goals is called
a. cyclical policy. b. monetary policy. c. fiscal policy. d. industrial policy.
Consider a small open economy with desired national saving of Sd = 1000 + 1000rw and desired investment of Id = 1000 - 500rw.Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is(a)rw = 0.025.(b)rw = 0.05.(c)rw = 0.0.
What will be an ideal response?