A characteristic that is important, but not essential to defining a perfectly competitive market is:
A. goods are standardized.
B. buyers and sellers are price takers.
C. firms can freely enter and exit the market.
D. All of these are necessary to define a perfectly competitive market.
C. firms can freely enter and exit the market.
Economics
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An economy currently has an inflationary gap. An increase in the money wage rate will ________ the inflationary gap and ________ the price level
A) decrease; decrease B) increase; increase C) increase; decrease D) decrease; increase
Economics
All of the following characteristics apply to monopolistic competition EXCEPT
A) a large number of firms compete. B) each firm produces the same identical product. C) firms compete on product quality, price, and marketing. D) there are no barriers to enter or exit the industry.
Economics