Perfectly competitive firms are price takers because
a. all small firms must take the price set by the largest firm in the market
b. firms take the price that government determines is a "fair" price
c. each firm is small and goods are perfect substitutes for one another
d. free entry and exit in the short run creates a constant market price in the long run
e. high barriers to entry force firms to compete by charging lower prices than other firms in the industry
C
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From which of the following goods is it most difficult to exclude free riders?
A) Tickets for the Newport Jazz Festival B) Food and beer sold at the Newport Jazz Festival C) Programs and souvenirs sold at the Newport Jazz Festival D) A radio simulcast of the Newport Jazz Festival
The "ceteris paribus" clause in the law of demand does not allow which of the following factors to change?
a. Consumer tastes and preferences. b. The prices of other goods. c. Expectations. d. All of these.