The assumption that a perfectly competitive industry has many sellers, each selling an identical product, leads to the conclusion that
A) consumers get to see a variety of outputs.
B) there are many buyers.
C) the economic profit will be positive in the long run.
D) firms are price takers.
D
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Suppose a fishing boat currently brings 10,000 fish to market and earns a profit of $40,000 when the price of fish is $8 . Suppose the boat dealer had overcharged the boat owner for the boat and refunded the overcharged amount. If the profit increases to $7.50 per fish, what was the value of the refund from the dealer?
a. $2.50 b. $25,000 c. $3.50 d. $35,000 e. $75,000
Currently, if inflation is 2 percent and the goods inflation target is 2.5 percent, policymakers:
A. congratulate themselves for coming in under their target. B. are indifferent because they don't have an inflation target. C. are indifferent because they are more interested in asset inflation. D. are unhappy because they have come in under their target.
What is the policy trilemma?
What will be an ideal response?
Economic theory suggests that if natural resources can be held as private property, then
A) conservation will be nonexistent. B) owners will have an incentive not to abuse them. C) natural resources will be sold off for immediate use. D) people will simply hold them and refuse to make them available.