The perfectly competitive firm cannot influence the market price because
A) it has market power.
B) its production is too small to affect the market.
C) a few buyers have control over the market price.
D) its costs are too high.
Answer: B
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What do the Monetarist and Keynesian economists claim was the main cause of the Great Depression?
(a) A contraction in supply (b) A downturn in demand (c) The falling federal deficit (d) All of the above
On average, the greater the unexpected decline in aggregate demand
A) the weaker is the resulting deflation. B) the greater is the resulting deflation. C) the greater is the resulting inflation. D) the greater is the rise in the price level.
Currently, union membership in the United States is about what percentage of civilian employees?
A. 10 percent. B. 15 percent. C. 20 percent. D. 25 percent.
The Federal Reserve came into existence in response to
A. a fear of a post-World War II depression. B. the inflation of the Civil War. C. the depression of the 1930s. D. the boom and bust nature of the late-19th and early-20th century.