A firm in a competitive price-searcher market can raise its price without losing all of its customers. This is a result of
a. low entry barriers.
b. a perfectly elastic market demand.
c. the small number of firms in the market.
d. product differentiation.
D
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A nation whose labor market is highly integrated with other nations in a currency union is more ______ to join because ______.
A) unlikely; workers would suffer real wage declines if they have competition from foreign workers B) unlikely; firms would find it expensive to hire workers if they have to pay in the common currency C) likely; labor market integration means that when there are asymmetric demand shocks the adjustment can be eased by migration of workers D) likely; labor force rules and policies can be harmonized more easily
Whenever people's incomes increase, they buy more guitars. Hence a scatter diagram shows that the relationship between income and guitars purchased is
A) a positive relationshi