Which of the following would provide the best evidence that a commodity is being produced under conditions of perfect competition?
A) The supply curve is perfectly inelastic.
B) The demand curve facing any one producer is perfectly elastic.
C) The production of the commodity is large.
D) The profits of producers are low.
Answer: A
Economics
You might also like to view...
Nonrivalry is a feature of
A) goods but not services. B) all nonexcludable goods. C) excludable goods. D) public goods.
Economics
Suppose a bank has the following balance sheet:
Assets Liabilities Reserves $14,000 Deposits $100,000 Loans $90,000 Net Worth $4,000 If the required reserve ratio is 10 percent, how much excess reserves does the bank have? What is the maximum amount that the bank can expand its loans?
Economics