When there is only one buyer in the market
A. the supply curve for the good will be perfectly elastic.
B. then the market will be perfectly competitive.
C. a closed shop exists.
D. a monopsony exists.
Answer: D
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Non-activists
A) distrust the ability of the political process to formulate sensible economic policy. B) argue for a constant-growth-rate rule for the money supply. C) argue that more unemployment now may prevent a lot more unemployment in the future. D) All of the above.
The cross-price elasticity of demand between goods X and Y
A. measures the responsiveness of the quantity of X demanded to changes in the price of Y. B. is the percentage change in the price of Y divided by the percentage change in the quantity of X demanded. C. is greater than zero if X and Y are substitutes. D. both a and c E. all of the above
In a production possibilities frontier graph, the cost of producing more units of a good is measured by the
A) dollar value of the additional output. B) area in the arc between the PPF and a straight line drawn between the starting point and the ending point. C) dollar value of the resources used to produce the good. D) amount of the other good or service that must be forgone. E) None of the above answers is correct.
How does a firm in a competitive market decide what level of output to produce in order to maximize its profit?
What will be an ideal response?