Assume Diana buys computers in a competitive market. It follows that
a. Diana has a limited number of sellers to turn to when she buys a computer.
b. Diana will find herself negotiating with sellers whenever she buys a computer.
c. if Diana buys a large number of computers, the price of computers will rise noticeably.
d. None of the above is correct.
d
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The interest rate on a bond is calculated as
A) the coupon times the face value. B) the coupon divided by the face value. C) the face value divided by the coupon plus the face value. D) the face value divided by the coupon.
In many regulated industries, marginal cost will be
a. below average cost. b. above total cost. c. above marginal fixed cost. d. below incremental cost.
An increase in the required reserve ratio by the Federal Reserve would:
A. cause M1 to contract. B. cause M1 to expand. C. have no effect on M1 or M2. D. affect only M2, not M1.
Domestic price supports on, say, sugar:
A. generate trade barriers to reduce imports of foreign sugar. B. increase world sugar prices. C. keep the domestic price of sugar artificially low. D. increase the earnings of foreign sugar producers.