The number of firms in a perfectly competitive market:
A. is fixed in the short run.
B. is fixed in the long run.
C. varies in the short run.
D. is the same at all possible long-run equilibria.
A. is fixed in the short run.
You might also like to view...
Sergio's rentals of Blu-ray movies increase by 10 percent when her income increases by 30 percent. Based on this information, we know that for Sergio, Blu-ray movies
A) are complements. B) are substitutes. C) are inferior goods. D) have an inelastic demand. E) are normal goods.
The use of government taxes and spending to alter macroeconomic outcomes is known as
A. Income policy. B. Fiscal policy. C. Monetary policy. D. Foreign trade policy.
The aggregate-demand curve
a) has a slope that is explained in the same way as the slope of the demand curve for a particular product.
b) is vertical in the long run.
c) shows an inverse relation between the price level and the quantity of all goods and services demanded.
d) All of the above are correct.
An increase in either supply or demand will shift the respective curve to the ___________. A decrease in supply or demand would shift the respective curve to the_______________. These are called changes in supply and demand. A movement along the demand curve is considered a change in QUANTITY demanded, while a movement along the supply curve is considered a change in QUANTITY supplied. These last changes are caused only by a change in _______
Fill in the blank(s) with the appropriate word(s).