Is the firm a perfect competitor or an imperfect competitor? Explain your answer in one sentence.
An imperfect competitor has to lower price to sell additional output.
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The self-correcting property of the economy means that output gaps are eventually eliminated by:
A. increasing or decreasing potential output. B. government policy. C. decreasing inflation only. D. increasing or decreasing inflation.
Suppose the market basket of consumer goods and services costs $180 using the base period prices, and the same basket of goods and services costs $300 using the current period prices. The CPI for the current year period equals
A) 166.7. B) 66.7. C) 160.0. D) 60.0. E) 300.0.
A feature of perfect competition is
A) use of non-price competition by firms. B) mutual interdependence among firms. C) unique products. D) standardized products.
Nick is delighted to see that the price of his favorite food, black olives, has fallen. Which of the following could be responsible?
a. an increase in the demand for black olives b. a decrease in the supply of black olives c. a simultaneous increase in demand and decrease in supply of black olives d. a simultaneous decrease in demand and increase in supply of black olives