In the price-taker model, what impact does the individual firm have on the price of its product?
a. The firm must accept the price determined in the market if it is going to sell its product.
b. The firm may raise or lower its price to a small extent, but sales revenues will tend to be the same regardless of price.
c. The firm may raise its price and, thereby, increase its revenues.
d. The firm may raise or lower its price to a considerable extent, but sales revenues will tend to be the same regardless of price.
A
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Which of the following is an outcome of economic variables not moving in sync with inflation?
a. unintended redistributions of purchasing power b. intentional redistributions of purchasing power c. better long-term planning d. decrease in blurred price signals
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this were depicting an autarky economy, the amount being bought domestically is:
A. 45 at $23 each. B. 45 at $11 each. C. 120 at $23 each. D. 85 at $16 each.
In a pizza industry, the cost of the factory is a(n) __________ only in the short run but not in the long run.
A macroeconomist would concentrate on which of the following issues?
A. The price of pizzas B. The profits of the IBM Corporation C. The unemployment rate in Germany D. The market for hotdogs