Because each perfectly competitive firm sells a product identical to that of the other firms
A) each firm tries to cut prices to increase its market share.
B) each firm's output is a perfect substitute for the output of any other firm.
C) each firm expects to earn some economic profit.
D) the demand for each firm's product is perfectly inelastic.
B
Economics
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Other things equal, the gravity equation predicts that the United States will have more trade with __________ than with _________.
a. Bangladesh; Japan b. Russia; Japan c. Canada; Bangladesh d. Russia; Bangladesh
Economics
Which of the following would be most likely to cause the short-run aggregate supply curve to shift left?
A) A reduction in oil prices due to increased drilling. B) A decrease in investor confidence. C) A rise in government spending. D) A spike in food prices due to a drought.
Economics