Which of the following is not a condition for perfect competition to exist:
a) There are a small number of firms in the industry.
b) All firms are producing the same product.
c) It is easy to either enter or exit the industry.
d) All of the above apply.
Answer: a) There are a small number of firms in the industry.
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Jamie is preparing to take his SAT tests. The table above shows how Jamie's score depends on the number of hours a week Jamie studies
a. Plot the relationship in the figure, putting the hours studied on the horizontal axis. b. Is the relationship you plotted positive or negative? c. What happens to the slope of the relationship as hours studied increase? d. Suppose Jamie can enroll in an SAT prep course and, by so doing, for every possible number of hours he studies, his score will be 100 points higher. Plot the new relationship between the number of hours studied and Jamie's SAT score in the figure. e. How many variables are involved in the figure you just completed?
Positive externalities are _____ because their producers have no incentive to take the _____ into account
a. oversupplied; external cost b. undersupplied; external benefit c. oversupplied; external benefit d. undersupplied; external cost
A firm's sunk costs are $100,000 and its marginal costs are $250 per unit. It produces 500,000 units and prices it at $400 per unit., How low can price go before the firm decides to shut down?
a. $150 b. $250 c. $250.20 d. $400
In the early 2000s, some argued that the Indian government impeded foreign investment with tariffs, investment caps, and tons of red tape. In terms of promoting or retarding economic growth, such policies:
A. increase growth because they keep people producing for the local market. B. decrease growth because they slow the growth of capital. C. increase growth because they stop exploitation by foreigners. D. decrease growth because they cause inflation.