What characteristic of a perfectly competitive firm that causes it to be a price taker?
A. many buyers and sellers
B. homogeneous product
C. free entry and exit
D. Both many buyers and sellers and homogeneous product are correct.
Answer: D
You might also like to view...
The free-rider problem arises because pure public goods are nonexcludable
Indicate whether the statement is true or false
Refer to Figure 21-3. Which of the following is consistent with the graph depicted above?
A) Taxes are changed so that real interest income is taxed rather than nominal interest income. B) Technological change increases the profitability of new investment. C) The government runs a budget deficit. D) An expected recession decreases the profitability of new investment. Figure 21-4
Studies suggest that brand loyalty is based primarily on real differences among competing products, suggesting that persuasive advertising is an ineffective means to maintain or increase market share
Indicate whether the statement is true or false
The price levels of various nations are linked together by:
A. Trading blocs B. Exchange rates C. The World Trade Organization D. The General Agreements on Tariffs and Trade