The price a perfectly competitive firm receives for its output
A) is determined by the interaction of the firm and all of the consumers who buy from the firm.
B) is determined by the interaction of all sellers and all buyers in the firm's market.
C) will not change in response to changes in market demand and supply because the firm is a price taker.
D) will be lowered by the firm in order to sell more output.
Answer: B
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Mike lives and works as a musician in the U.S. However, he sometimes plays in concerts in foreign countries. The money he earns from these concerts are treated as ________ in the U.S. current account
A) imports B) exports C) factor payments from foreigners D) transfer receipts
Using the above figure, the short-run break-even price for the perfectly competitive firm will be
A) P1. B) P2. C) P3. D) P4.