The assumption under perfect competition of a "homogeneous product" means that
A. that no firm can charge more than another for its product.
B. the good one firm produces is very different than the good another produces.
C. the good one firm produces is exactly the same as the good another firm produces.
D. that no buyer will pay more for one firm's good than another's.
Answer: C
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If the inflation rate target is 2%, the current inflation rate is 1%, and the output gap is minus 2%, then according to the Taylor rule, the nominal federal funds rate should be ________ percent
A) zero B) two C) four D) three E) none of the above
The stocks that make up the Dow Jones Industrial Average:
A. are dominated by the automobile industry. B. are not a broad measure of the market since they do not include any technology companies. C. have changed as the structure of the economy has changed. D. are the same ones that were originally used to construct the index.
Cross elasticity of demand measures how sensitive purchases of a specific product are to changes in:
A. the price of some other product. B. the price of that same product. C. income. D. the general price level.
Stock holders are classified as the ________ of a company.
A. debt holders B. liabilities C. employees D. owners