Answer the following questions true (T) or false (F)
1. Perfectly competitive industries tend to produce low-priced, low-technology products.
2. The market demand curve in a perfectly competitive market is downward sloping.
3. An increase in a firm's fixed cost will not change the firm's profit-maximizing output in the short run.
1. FALSE
2. TRUE
3. TRUE
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The textbook argues that one of the trade-offs workers make is working for a small company or a large company. The small companies offer:
A.benefits that appeal to the workers that do not include job security or career advancement. B. job security but limited potential for advancement. C. both job security and ample potential for advancement. D. more potential for advancement but limited job security.
Herb's Inc has a large share of its market and is tempted to collude with the few firms that are in its market. Herb's operates in
A) an oligopoly. B) a monopolistically competitive market. C) a monopoly market. D) a perfectly competitive market. E) a collusively protected market.