In competitive price-taker markets, firms
a. can sell all of their output at the market price.
b. produce differentiated products.
c. can influence the market price by altering their output level.
d. are large relative to the total market.
A
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If a firm is operating at an output level where losses are minimized the firm
A) has no incentive to stay in the industry. B) is better of exiting the industry. C) is maximizing profits. D) will shut down
Two goods that are substitutes are:
a. bacon and eggs. b. camera and film. c. tennis racket and tennis balls. d. movie theater tickets and video rentals. e. coffee and cream.
The permanent income hypothesis is associated with
a. John M. Keynes b. James Duesenberry c. Franco Modigliani d. Adam Smith e. Milton Friedman
Investment in physical capital means
A. purchasing supplies. B. purchasing equipment and buildings. C. taking out loans. D. hiring more employees.