All of the following are true regarding perfectly competitive price determination EXCEPT
A) the market price is determined by the interactions among all buyers (households) and firms.
B) the individual firm takes the market price as given.
C) the individual firm is known as a market price maker.
D) the individual firm's marginal revenue curve is horizontal at the market price.
Answer: C
Economics
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Asymmetric information will always cause
A) efficiency problems. B) equity problems. C) Both A and B. D) None of the above.
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What is the name of the organization that defines business cycle peaks and troughs in the United States?
A) the Bureau of Labor Statistics B) the Federal Reserve C) the National Bureau of Economic Research D) the National Peak and Trough Committee
Economics