The perfectly competitive firm has no influence over price because
a. its output is so insignificant relative to the market as a whole.
b. anti-trust laws constrain perfectly competitive firms.
c. consumers establish the prices of products.
d. it doesn't know its demand curve.
a
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Which of the following is an example of product differentiation based on the physical aspects of a product?
a. A fashion designer advertising the new comfortable design of its apparels b. A housing construction company offering low-interest bank loans for purchasing its apartments c. A car mechanic opening his new workshop near a busy highway d. An electronic company offering a warranty of 5 years for its air conditioners
Joe's Taco Hut can purchase a delivery truck for $20,000 and Joe estimates it will generate a net income (after taxes, maintenance and operating costs) of $4,000 per year. His other option is to go to work for someone else earning net income of $3,000 per year. He should:
A. purchase the truck if the real interest rate is less than 5%. B. not purchase the truck if the real interest rate is greater than 1%. C. purchase the truck if the real interest rate is less than 15%. D. purchase the truck if the real interest rate is greater than 5%.