In a perfectly competitive market, all of the following are true EXCEPT:
A. firms take prices as given.
B. firms produce the quantity for which marginal cost equals price.
C. firms can increase profits by charging a price higher than the market price.
D. buyers take prices as given.
C. firms can increase profits by charging a price higher than the market price.
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Which of the following will cause the demand curve for product A to shift to the left?
A. Population growth that causes an expansion in the number of persons consuming A. B. An increase in money income if A is a normal good. C. A decrease in the price of complementary product C. D. An increase in money income if A is an inferior good.
Which of the following is TRUE about the effects of an excise tax if consumers are totally unresponsive to price changes?
A) Consumers pay all of the excise tax. B) Producers pay all of the excise tax. C) Consumers and producers share the excise tax equally. D) Neither consumers nor producers pay the excise tax.