Which of the following best explains why a firm in a competitive price-taker market must take the price determined in the market?
a. The short-run average total costs of firms that are price takers will be constant.
b. If a price taker increased its price, consumers would buy from other suppliers.
c. Firms in a price-taker market will have to advertise in order to increase sales.
d. There are no good substitutes for the product supplied by a firm that is a price taker.
B
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In building a model the assumption that allows economists to study only the factors being analyzed is the
A) rationality assumption. B) ceteris paribus assumption. C) the self-interest assumption. D) the scarcity assumption.
A rise in wage rates
A) causes the AD curve to shift leftward. B) causes the short-run aggregate supply (SRAS) curve to shift rightward. C) does not affect the present position of the SRAS curve. D) causes the AD curve to shift rightward. E) causes the SRAS curve to shift leftward.
Game theory:
A. complements the standard supply/demand model. B. is the best model for monopoly. C. replaces the standard supply/demand model. D. is the best model for perfect competition.
Which type of collective bargaining agreement requires workers to be union members prior to being considered for employment?
A) right-to-work B) union shop C) open shop D) closed shop