Which of the following statements concerning perfect competition is not true?
a. Firms are price takers.
b. The demand curve facing an individual firm is horizontal.
c. A firm's demand curve is identical to its marginal revenue curve.
d. The firms produce differentiated products.
e. If a firm raises its price, it will lose all of its customers.
d
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Which of the following is TRUE about exchange rates?
A) They should not be volatile because they will determine the economic climate. B) They are generally more volatile than stock prices. C) They are more volatile than several underlying factors that move them such as money supplies and fiscal variables. D) They should be volatile because to correct price signals they adjust quickly in response to economic news, but they are generally less volatile than stock prices. E) They never overreact to economic news.
The aggregate supply curve
a. indicates the markup at which firms are willing to supply a given level of output b. is derived from equilibrium conditions in the money market c. has a positive slope because an increase in real GDP causes an increase in the cost of resources d. is found by summing up the supply curves of all the firms in an economy e. illustrates how a change in the price level affects total output