In the model of perfect competition, firms produce a
A) standardized product with considerable control over price.
B) differentiated product with no control over price.
C) differentiated product with considerable control over price.
D). all of the above.
E). none of the above.
C) differentiated product with considerable control over price.
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In perfect competition, the product of a single firm
A) has many perfect complements in consumption produced by other firms. B) is sold to different customers at different prices. C) is sold under many differing brand names. D) has many perfect substitutes in consumption produced by other firms.
In the Hotelling model, what effect would an increase in the transportation cost t have on, in the first instance, a monopoly firm and, in the second instance, two firms located at the extremes of the line segment who compete over the marginal consumer?
a. The monopolist's profit would decrease but the duopolists' would increase. b. Both monopolist's and duopolists' profits would increase. c. Both monopolist's and duopolists' profits would decrease. d. The monopolist's profit would increase but the duopolists' would decrease.
The marginal tax rate is:
A. less than the average tax rate when a tax is progressive. B. calculated by dividing total taxes paid by one's total taxable income. C. the percentage of one's total income that is paid in taxes. D. the percentage of an increment of income that is paid in taxes.
Economic policies are ineffective concerning quantities of output directly when
A. the aggregate demand is flat. B. the economy is not producing at capacity. C. the aggregate supply is vertical. D. the aggregate supply curve is flat.