What happens to the price of the product and total revenue for a perfectly competitive firm if it doubles the amount of output it supplies in the market?
The perfectly competitive firm is so insignificant relative to the market as a whole that it has absolutely no influence over price. Total revenue of the firm will increase because it can sell as many units of output as it wishes in a perfectly competitive market.
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Which of the following is true?
A. A bondholder owes money to a corporation. B. A corporation owes money to a bondholder. C. A bondholder owns part of a corporation. D. A bondholder votes on company management.
Suppose studies showed that 12 percent of all teens choose to participate in underage drinking. If policymakers wish to reduce the amount of underage drinking, they should:
A. not share that statistic, and let teens think that it's a huge problem with all teens. B. Informing them will have no impact on their individual behavior. C. let teens know that the great majority of teens currently do not drink. D. The statistic is likely to influence their personal decision, but it is impossible to predict in what way without more information.
The percentage change in quantity demanded divided by the percentage change in income is referred to as the
a. price elasticity of demand b. income elasticity of demand c. cross-price elasticity of demand d. slope of the demand curve e. demand curve
If new firms enter a perfectly competitive industry, the
a. market supply curve will shift to the left, market price will fall, and industry output will increase b. market supply will shift to the left, market price will rise, and the industry output will increase c. market demand will shift to the right, market price will increase, and market output will increase d. market supply will shift to the right, market price will fall, and market output will increase e. market supply will shift to the right, market price will increase, and market output will decrease