Which of the following is TRUE regarding perfect competition? I. The firms are price takers. II. Marginal revenue equals the price of the product. III. Established firms have no advantage over new firms
A) I and II
B) II and III
C) I, II and III
D) I only
C
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Giffen goods
A) have not existed since prior to the Industrial Revolution. B) were proven to exist in the 1890s by Sir Robert Giffen. C) were not shown to actually exist until 2006. D) are theoretical and have never been discovered in the real world.
Which of the following is an example of a monopolistically competitive industry?
a. electric lamp bulbs b. aircraft manufacturing c. corn d. sweaters
Other things being equal, an increase in the number of sellers of a good will __________________ for that good.
A. increase equilibrium price and quantity B. increase equilibrium price and decrease equilibrium quantity C. decrease equilibrium price and increase equilibrium quantity D. decrease equilibrium price and quantity E. increase demand
Kandace is interested in a house that fits most of her needs, but it is located in a busy area where she is not sure she wants to live. Her concern about the property's location is called
A) physical deterioration. B) area preference. C) permanence of investment. D) immobility.