If competing price searchers adjust their own prices on the basis of a close monitoring of their rival's prices,
A) all prices will tend to be the same, which proves prices are not competitive.
B) all prices will tend to be the same, which proves sellers are not competing on price.
C) each price searcher's demand curve will be indeterminate.
D) prices will fluctuate regularly.
E) prices will rise when costs increase but will not fall when costs decrease.
C
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What is the relationship between price and marginal revenue for firms in perfect competition? Explain
What will be an ideal response?
Which of the following is NOT an accurate description of the recession that accompanied the financial crisis of 2007-2009?
A) GDP declined by more than twice the rate of the average recession. B) Inflation rose at nearly twice the rate as the average recession. C) It lasted just under twice as long as the typical recession. D) Peak unemployment was about one-third higher than usual.
If the government legislates a price ceiling that is above the equilibrium price
A. a shortage will develop. B. some non-price method of rationing will develop. C. market price and quantity sold will be unaffected. D. a surplus will develop.
A decrease in supply shifts the supply curve to the left
a. True b. False Indicate whether the statement is true or false