In a purely competitive industry, each firm:
A. Determines its own price
B. Produces a differentiated product
C. Can easily enter or exit the industry
D. Engages in various forms of nonprice competition
C. Can easily enter or exit the industry
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Which of the following explains why frictional unemployment exists in an economy?
A) It arises because job search is completely a supply side phenomenon in the labor market, and firms make no attempts to advertise for the vacancies they have. B) It arises because most of the workers shirk at work. C) It arises because it takes time for an unemployed worker to find a firm with a well-matched job vacancy. D) It arises because unemployment benefits encourage workers not to look for jobs.
The aggregate demand curve of an economy illustrates the relationship between _____
Fill in the blank(s) with the appropriate word(s).