Firms in a perfectly competitive market cannot influence
a. the quantity of the good that they produce
b. how much labor to use in production
c. how much capital to employ in production
d. the level of advertising that they use
e. the price of the product they sell
E
You might also like to view...
The present value of any future sum of money is the amount that would be needed today, at current interest rates, to produce that future sum
a. True b. False Indicate whether the statement is true or false
As inflation decreases, households become ________ uncertain leading to ________ spending.
A. less; less B. less; more C. more; more D. more; less
In a perfectly competitive market, when the price is below the minimum average total cost for all firms:
A. economic profits will be equal to zero. B. the price will eventually rise once enough firms have left the market. C. firms will likely enter the market. D. accounting profits will be positive.
All other factors held constant, when McDonald's raises the price of its Big Mac by 20 cents,
A. there is likely to be an increase in demand for Taco Bell's Chalupas, assuming the Big Mac and Chalupas are substitutes. B. there is likely to be an increase in demand for McDonald's Big Mac, assuming the Big Mac and Chalupas are substitutes. C. there is likely to be a decrease in demand for Taco Bell's Chalupas, assuming the Big Mac and Chalupas are substitutes. D. there is likely to be a decrease in the quantity of Taco Bell's Chalupas demanded, assuming the Big Mac and Chalupas are substitutes.