List the characteristics of a perfectly competitive market
What will be an ideal response?
(1.) Many firms, each small relative to the size of the market.
(2.) Homogeneous products.
(3.) Many households, each small relative to the market.
(4.) Households and firms possess all the information they need to make market choices.
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If a producer is not able to expand its plant capacity immediately, it is
A) operating in the long run. B) operating in the short run. C) losing money. D) bankrupt.
In general, if a consumer good is produced domestically and consumed domestically, an increase in its price will have which of the following effects?
a. The consumer price index will increase relatively more than will the GDP deflator. b. The consumer price index and the GDP deflator will increase by the same amount. c. The consumer price index will increase relatively less than will the GDP deflator. d. One cannot generalize about the increase in the consumer price index relative to the increase in the GDP deflator.
Suppose nominal GDP in 2009 was $100 billion and in 2010 it was $260 billion. The general price index in 2009 was 100 and in 2010 it was 180. Between 2009 and 2010 the real GDP rose by approximately:
a) 160 percent. b) 44 percent. c) 37 percent. d) 80 percent.
Refer to Table 21.5:Table 21.5QTFCTVCTCAVCMC0 15--1 23 2 43 15 The marginal cost of the third unit of output in Table 21.5 is
A. $15. B. $4. C. $30. D. $3.