In a perfectly competitive market structure any firm can enter or leave the industry without serious impediments. This implies
A) the products sold will be alike.
B) firms will move labor and capital in pursuit of profit-making opportunities to whatever business venture gives them the highest return on their investment.
C) no one buyer or seller has any influence on price.
D) consumers are able to find out about lower prices charged by other firms.
Answer: B
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The official unemployment rate may understate the true rate of unemployment because of
A) discouraged workers who no longer are actively seeking work and are excluded from the statistics. B) increases in worker productivity. C) workers who hold two jobs. D) changes in wage rates.
Along any downward sloping straight-line demand curve:
A) both the price elasticity and slope vary. B) the price elasticity varies, but the slope is constant. C) the slope varies, but the price elasticity is constant. D) both the price elasticity and slope are constant.
All the factors below are causes of diminishing marginal returns, except
a. Difficulty of monitoring and motivating larger workforces b. Increasing complexity of larger systems c. Specialization and division of Labor d. The "fixity' of some factor
Which of the following statements is correct?
a. Government should tax goods with either positive or negative externalities. b. Government should tax goods with negative externalities and subsidize goods with positive externalities. c. Government should subsidize goods with either positive or negative externalities. d. Government should tax goods with positive externalities and subsidize goods with negative externalities.