Why are perfectly competitive ranchers in Montana price takers?
What will be an ideal response?
Because one farmer's beef is identical to another farmer's, each farmer's beef is a perfect substitute for all other farmers' beef. In addition, there are over one million ranchers in the United States. As a result, no individual rancher can impact the market price by increasing or decreasing production. Therefore each rancher faces a perfectly elastic demand. Each can sell all of the beef desired at the market price, but not one penny more. Once the market sets the price, the rancher must take as given whatever the price might be.
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The present value of $200 to be received after 5years at 10 percent interest is $112.2
Indicate whether the statement is true or false
Which of the following statements is always true when inflation occurs?
a. The domestic money loses purchasing power. b. Borrowers benefit and lenders suffer. c. The international competitive position of the country is negatively affected. d. All of the above are always true. e. Lenders benefit and borrowers suffer.