Which is an important aspect of the perfectly competitive market that leads to long run equilibrium?
A) perfect information
B) freedom of entry and exit
C) price taking behavior
D) homogeneous products
B
You might also like to view...
The cross-price elasticity of demand between two goods that are substitutes can never be:
A. greater than one. B. positive. C. negative. D. less than one.
If the Federal Reserve "pegs" the interest rate, then in the IS-LM framework, the LM schedule
a. is vertical. b. becomes horizontal. c. slopes upward to the right. d. slopes downward and the left.
A large corporation's profit objective may not be profit or wealth maximization, because
A) stockholders have little power in corporate decision making. B) management is more interested in maximizing its own income. C) managers are overly concerned with their own survival and may not take all prudent risks. D) All of the above
When the market is in equilibrium, total surplus is maximized.
Answer the following statement true (T) or false (F)