The benefit of a subsidy accrues mostly to consumers

A) in every instance.
B) if Ed/Es is large.
C) if Ed/Es is small.
D) if Ed and Es are equal.
E) in no instance.

C

Economics

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The model of perfect competition is valuable for

A) prediction. B) comparison to other markets. C) Either A or B. D) None of the above.

Economics

Which of the following is always true for a perfectly competitive firm?

a. Marginal revenue is below price. b. Marginal revenue exceeds price. c. The market demand curve is a horizontal line. d. Price equals marginal revenue. e. The market supply curve is a horizontal line.

Economics