Under perfect competition, a firm is a price taker because:
a. setting a price higher than the going price results in profits.
b. each firm's product is perceived as different.
c. each firm has a significant market share.
d. setting a price higher than the going price results in zero sales.
d
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According to the paradox of value, expensive goods, such as gemstones, provide consumers with
A) high total utility and low marginal utility. B) low total utility and low marginal utility. C) low total utility and high marginal utility. D) high marginal utility and high total utility.
When a perfectly competitive firm is in long-run equilibrium, what is the relationship between the firm's marginal cost, average total cost, marginal revenue, and price?
What will be an ideal response?
A bank has excess reserves of $6,000 and demand deposit liabilities of $100,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, the bank's excess reserves will be
A) -$5,000. B) -$1,000. C) $1,000. D) $5,000.
Per pupil spending on education was seven times higher in 2000 than in 1940 after adjusting for inflation
a. True b. False