The perfectly competitive firm cannot influence the market price because
A. its production is too small to affect the market.
B. its costs are too high.
C. it has market power.
D. a few buyers have control over the market price.
Answer: A
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In the early decades of the 18th century, English goods sold for as much as 80 to 140 percent more in the colonies than in England primarily due to:
a. high tariffs on English goods imported to the colonies. b. a limited supply of English goods available for shipment to the colonies. c. high transportation costs for goods shipped from England to the colonies. d. legally established price floors on English goods sold in the colonies.
In drawing a straight-line production possibilities curve for an economy that produces oil and corn, we assume that resources (for example, the number of labor hours)
a. are fixed b. increase at a constant rate c. increase at an increasing rate d. increase at a decreasing rate e. are not uniform, such as a variety of skills and quality of work