All of the following are true regarding perfectly competitive price determination EXCEPT
A) the market price is determined by the interactions among all buyers (households) and firms.
B) the individual firm takes the market price as given.
C) the individual firm is known as a market price maker.
D) the individual firm's marginal revenue curve is horizontal at the market price.
Answer: C
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Commitments to make or receive payments in the future are made easier by money's function as a _____
a. unit of account b. store of value c. medium of exchange d. form of barter e. commodity
The MFC curve
A) lies below the labor supply curve, when the labor supply curve is upward sloping. B) lies above the labor supply curve, when the labor supply curve is upward sloping. C) is the labor supply curve. D) is parallel to the labor supply curve, when the labor supply curve is downward sloping.
Refer to the above table. What is the marginal utility for the 3rd unit for Michael and for Rosie?
A. Michael: 270; Rosie: 270 B. Michael: 75; Rosie: 75 C. Michael: -10; Rosie: 20 D. Michael: 75; Rosie: 80
In the presence of no externalities,
A) social marginal cost exceeds private marginal cost. B) social marginal cost is less than private marginal cost. C) social marginal cost equals private marginal cost. D) social marginal cost and private marginal cost cannot be compared.