All of the following are characteristics of a perfectly competitive industry EXCEPT
A) the product sold is homogeneous.
B) firms in the industry are price takers.
C) buyers and sellers have equal access to information.
D) there are a large number of buyers and sellers with only a few being able to influence the market price.
Answer: D
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Suppose initially there is no customs union and that the $100 tariff is imposed by the United States. Now, Mexico invests in productive technology and it shifts the Mexican supply curve to SMex. The United States now forms a customs union with Mexico. This will result in a price of _______ and imports of _______.
a. $250; 500 b. $250; 400 c. $150; 600 d. $150; 500
Tomas increased his consumption of potato chips when the price of pistachios increased. For Tomas, potato chips and pistachios are
A) both luxury goods. B) substitutes in consumption. C) both inferior goods. D) complements in consumption.