In any given market, prices are determined by
A) specialization of labor.
B) transactions costs.
C) supply and demand.
D) comparative advantage.
C
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In the figure above, the market for jackets ________ in long-run equilibrium, and there is ________ for new firms to enter
A) is; no incentive B) is; an incentive C) is not; an incentive D) is not; no incentive
If the marginal profit from increasing output by one unit is negative, then to attain an optimum the firm should
a. increase output until marginal profit equals zero. b. reduce output until marginal profit equals zero. c. increase output until marginal profit is maximized. d. reduce output until marginal profit is maximized.
A change in consumers' incomes causes a change in:
A. the demand for normal goods but not the demand for inferior goods. B. demand. C. the cross-price elasticity of demand. D. supply.
A firm in a perfectly competitive market:
A. must take the price that is determined in the market. B. must reduce its price if it wants to sell a larger quantity. C. must be large relative to the total market. D. can exert a major influence on the market price.