A perfectly competitive firm has no influence over price because:
a. its output is insignificant relative to the market as a whole.
b. antitrust laws constrain perfectly competitive firms
c. consumers establish the prices of products.
d. it is unaware of the demand curve it faces.
a
Economics
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In the above figure, if the market is in equilibrium, area A + area B + area C equals
A) total surplus. B) consumer surplus. C) deadweight loss. D) producer surplus. E) total revenue.
Economics
Suppose the U.S. government encouraged new medical school graduates to take over existing practices from doctors wishing to retire by paying both the new and retiring doctors $100,000. These doctors would be exemplifying the economic idea that
A) people are rational. B) people respond to economic incentives. C) optimal decisions are made at the margin. D) equity is more important than efficiency.
Economics