Which of the following would provide the best evidence that a commodity is being produced under conditions of perfect competition?
A) The supply curve is perfectly inelastic.
B) The demand curve facing any one producer is perfectly elastic.
C) The production of the commodity is large.
D) The profits of producers are low.
Answer: A
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Inflation rates during the years 1979-1981 were the highest the United States has ever experienced during peacetime
Indicate whether the statement is true or false
Suppose the Inkuyo family invests in the local bottling corporation. Albert, Brad, Carol, and Diana each invest separately. At the end of a very successful quarter, Carol and Brad receive a payment from the corporation equal to 10 percent of their investment. Albert receives 7 percent, but is paid before Carol or Brad. Diana receives 6 percent. If Diana receives her money before Albert, she must
have invested in a. common stock b. preferred stock c. convertible stock d. corporate bonds e. low-yield dividends
What is the equivalent tax-exempt bond yield for a taxable bond with an 8% yield and a bondholder in a 35% marginal tax rate? Explain.
What will be an ideal response?
A decrease in firm 1's marginal cost will cause:
A. an upward shift in firm 2's reaction function, resulting in a new Cournot equilibrium where firm 1 is producing a lower quantity and firm 2 is producing a higher quantity. B. a downward shift in firm 2's reaction function, resulting in a new Cournot equilibrium where firm 1 is producing a higher quantity and firm 2 is producing a lower quantity. C. a downward shift in firm 1's reaction function, resulting in a new Cournot equilibrium where firm 1 is producing a lower quantity and firm 2 is producing a higher quantity. D. an upward shift in firm 1's reaction function, resulting in a new Cournot equilibrium where firm 1 is producing a higher quantity and firm 2 is producing a lower quantity.