Bethany decides to get some build a chicken coop, get some chickens, and start selling fresh eggs in her neighborhood. This example describes which of the following characteristics of perfect competition?
A. large number of small firms
B. homogeneous goods
C. very easy entry and exit
D. imperfect information
Answer: C
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There is only one firm in a small island country. The firm produced 1,000 units of Good X during a particular year out of which it could sell 900. If each unit of the good sells for $500, what is the gross domestic product of the country?
A) $150,000 B) $450,000 C) $40,000 D) $500,000
When a labor union confronts a monopsonist, the result is that union workers receive a wage
a. greater than their marginal labor cost b. that maximizes the return to monopsony power c. equal to a perfectly competitive labor market d. below the labor supply curve e. equal to the marginal revenue product
In addition to investment in physical and human capital, what other public policies might a country adopt to increase productivity?
A nation's official reserves:
A. compensate for differences in the current and capital and financial accounts. B. consist of all domestic and foreign currency held by a nation's central bank. C. are always zero. D. are always negative.