Which of the following is a characteristic of a firm in a perfectly competitive market?
A) The firm must lower its price in order to increase quantity demanded.
B) The firm cannot make a profit in the short run because it is too small a part of the total market.
C) The firm can make a profit in the long run but not in the short run.
D) The firm can sell as much as it wants without having to lower its price.
D
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One of the main reasons that Malthus' prediction of repeated wars and famines did not come true is
a. the government's intervention in the economy b. the implementation of an income tax to raise money for governmental spending c. increases in the supply of labor d. continuing technological change e. changes in planned investment spending
If a 1 percent change in income generates a greater than 1 percent change in quantity demanded for boat rentals, then the demand for boat rentals
a. is a good illustration of Engel's law b. reflects the demand for an inferior good c. has a price elasticity greater than one d. is income elastic e. is income inelastic