Under perfect competition
a. the only major difference between firms is the mark-up they use to determine prices
b. a single seller sets the price
c. a small number of sellers offer a differentiated product
d. sellers offer a standardized product
e. a small number of buyers and sellers negotiate the market price
D
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During the mid-2000s, the average price of a used car fell by nearly $500 and the quantity sold nation-wide decreased by several thousands each year. This set of results is a contradiction of the law of demand
Indicate whether the statement is true or false
The Gramm-Leach-Bliley Act of 1999
A) allowed the creating of financial holding companies. B) set conditions under which an FHC can set up a merchant bank. C) brings the U.S. closer to the universal banking model. D) does all of the above.
Which of the following provides the foundation of the case for free trade?
a. The law of diminishing marginal utility b. The anti-dumping argument c. The industrial diversity argument d. The theory of comparative advantage
When the demand curve is vertical and the supply curve is upward sloping,:
a. a rise in the input price that increases marginal cost by $1, decreases the firm's profit by $1. b. a drop in the input price that lowers the marginal cost by $1, doubles the firm's profit. c. a drop in the input price that lowers the marginal cost by $1, decreases the output price by $1. d. a rise in the input price that increases the marginal cost by $1, doubles the output price.