Which of the following is a characteristic of perfect competition?
A. While there are many firms, relatively few tend to influence the market price.
B. The firms that can distinguish its product from its competitors are the ones that usually succeed.
C. Some barriers to entry into the market exist.
D. In the buyers mind, the products are identical.
D. In the buyers mind, the products are identical.
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Marginal revenue is
A) total revenue divided by the total quantity of output. B) the change in profit divided by the change in the quantity of output. C) the change in total revenue divided by the change in total cost. D) the change in total revenue divided by the change in the quantity of output.
Darius has $1,200 a month to spend on clothing and food. The price of clothing is $60 and the price of food is $10. What is the equation for Darius's budget constraint, assuming he spends his entire budget?
A. $60 × Clothing + $10 × Food > $1,200 B. $60 × Clothing + $10 × Food = $1,200 C. Clothing + Food < $1,200 D. $60 × Clothing + $10 × Food ? $1,200
In determining the number of persons who are poor in the U.S. when calculating family income
A. only earnings are counted. B. only earnings are counted, while cash transfers from the government are excluded. C. money income, including cash transfers received from the government, is counted. D. both earnings and the value of medical services, food stamps, and housing received are counted.
Assuming instead that the market depicted in Figure 8.1 is perfectly competitive, the equilibrium price and output would be:
A) P2 and Q2. B) P1 and Q1. C) P4 and Q1. D) P3 and Q1.