Which of the following statements is true for both Microsoft and a locally owned restaurant?
A. Both confront perfectly elastic demand for their products.
B. Both are perfect competitors.
C. Both seek to maximize profits.
D. Neither firm is able to influence the price of their products.
Answer: C
You might also like to view...
Nations that borrow from abroad to support current investment will
A) always sacrifice future consumption. B) sacrifice future consumption only if the investments are profitable. C) always be better off in the future. D) be better off in the future if the investments are profitable.
The interest rate which the Fed charges banks that borrow reserves from it is the:
a. federal funds rate. b. discount rate. c. reserved rate. d. investment rate. e. check rate
If losses are incurred in a competitive industry, then over the long-run we can expect a greater quantity supplied, because market price will rise
a. True b. False Indicate whether the statement is true or false
Firms still have the incentive to cheat even after a game leads to cooperation
Indicate whether the statement is true or false