Think of the characteristics of perfect competition and use them to decide which of the following firms is most likely to belong in a perfectly competitive market
a. pizza restaurant
b. cookie producer
c. bicycle store
d. generic canned peas producer
e. corn farm
E
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The amount of a tax paid by the buyers will be larger the
A) more elastic the demand and the more inelastic the supply. B) more inelastic the demand and the more elastic the supply. C) more inelastic are both the supply and demand. D) more elastic are both the supply and demand.
Real GDP is
A. the value of output in current dollars. B. a misnomer since all GDP figures have to be in dollar values. C. Nominal GDP corrected for changes in the average of overall prices. D. the nominal value of all real goods produced in the nation in a year.
Suppose your marginal utility from consuming the 3rd slice of cake is zero, then your total utility from consuming cake is
A) maximized. B) decreasing. C) negative. D) increasing.
Monopolistic competition is best described as
a. many firms with some control over price, and some product differentiation b. many firms with no control over price, producing identical products c. a few firms with some control over price, producing highly differentiated products d. a few firms with no control over price, producing similar products e. a single firm producing all of the output for the industry, with strong control over price