Which of the following statements is NOT true for a perfectly competitive firm?
A) A firm's demand curve is horizontal.
B) The firm can influence its demand curve by advertising its product.
C) The firm's demand curve is perfectly elastic.
D) The market demand and supply curves determine the market price.
Answer: B
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From 1970 to 2010, the real price of a college education increased, and total enrollment increased. Which of the following could have caused this increase in price and enrollment?
A) A shift to the right in the supply curve for college education and a shift to the left in the demand curve for college education. B) A shift to the left in the supply curve for college education and a shift to the right in the demand curve for college education. C) A shift to the left in the supply curve for college education and a shift to the left in the demand curve for college education. D) none of the above
A deadweight loss of consumer and/or producer surplus occurs when
a. producers fail to maximize profits. b. mutually beneficial transactions cannot be completed. c. consumers do not maximize their utility. d. the price of inputs increases.