In a perfectly competitive market, producers:
A. are able to sell as much as they want without affecting the market price.
B. can influence the price upward by restricting output.
C. often undercut the competition's price and force firms to leave the market.
D. None of these is true of perfectly competitive markets.
A. are able to sell as much as they want without affecting the market price.
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Nominal GDP increases
A) only if total production increases. B) only if prices increase. C) if either prices and/or total production increase. D) only if the productivity of resources increase. E) only if depreciation decreases.
As a means of motivating research and development, a patent may stimulate either too much or too little research, relative to the socially optimal level
Indicate whether the statement is true or false
In the case of errors-in-variables bias, the precise size and direction of the bias depend on
A) the sample size in general. B) the correlation between the measured variable and the measurement error. C) the size of the regression R2. D) whether the good in question is price elastic.
When Mary earned $3,200 per month, she bought 2 concert tickets each month. Now her monthly income is $5,600, and the number of concert tickets she purchases has risen to 3 per month
Mary's income elasticity of demand for concert tickets equals ________ and the tickets are a(n) ________ good for Mary. A) -1.36; normal B) -0.21; inferior C) +0.21; complementary D) +0.73; normal