Many economists consider perfect competition to be the most desirable market structure because they believe it generates the
a. highest average cost
b. lowest prices and output
c. greatest economic profit
d. lowest prices and greatest output
e. greatest normal profit
D
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Answer the next question on the basis of the following demand schedule.PriceQuantity Demanded$615243342516If this demand schedule were graphed, we would find that
A. its slope diminishes as we move southeast down the curve. B. its slope is constant throughout. C. its slope diminishes as we move northwest up the curve. D. the data are inconsistent with the law of demand.
Which of the following would cause the short-run aggregate supply curve to shift to the left?
A) an increase in inflation expectations B) a decrease in interest rates C) a technological advance D) an increase in the price level
Why do we need a units-free measure of the responsiveness of the quantity demanded of a good or service to a change in its price?
What will be an ideal response?
A decline in Tobin's q can be caused by ________
A) a rise in the market value of a firm B) an increase in stock prices C) a decline in stock prices D) a decline in the replacement cost of capital