If pure competition doesn't exist in the real world what is the implication for the shape of the demand curve that real-world firms would face?
What will be an ideal response?
If pure competition doesn't exist then real-world firms would actually face a downward-sloping demand for their product.
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If there is a natural disaster, the long-run aggregate-supply curve shifts
a) upward. b) left. c) right. d) not at all but instead remains constant.
You are on a vacation in a foreign country. Because it is your first visit to the country, you do not know much about the tourist spots. So you decide to ask the manager of the hotel regarding the popular tourist places
He tells you that there is a waterfall and a beautiful park close to the hotel that you can visit. You are wondering which place to go to when you overhear some of the tourists planning a trek to one of the falls. You decide to join them. This is an example of a(n) ________. A) moral hazard B) adverse selection C) pecuniary externality D) information cascade