(A) Firms can influence market price.
(B) Commodities have few sellers.
(C) It is difficult for new sellers to enter the market.
(D) Each seller has a very small share of the market.
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. A price taker is:
(A) A firm that accepts different prices from different customers.
(B) A consumer who accepts different prices from different firms.
(C) A firm that cannot influence the market price.
(D) Both (b.) and (c.).
In perfect competition, product price is:
(A) Greater than marginal revenue.
(B) Equal to marginal revenue.
(C) Equal to total revenue,Greater than total revenue.
(D) None
Marginal cost:
(A) Is the cost of hiring the last unit of labor
(B) Is another word for average cost
(C) Is rising when marginal product is rising
(D) Should be avoided
The change in total revenue divided by a one-unit change in output sold is known as:
(A) Average revenue.
(B) Average profit.
(C) Marginal cost.
(D) Marginal revenue.
Elasticity of supply is defined as the ratio of:
(A) Price over quantity supplied.
(B) Change in price over change in quantity supplied.
(C) Percentage change in quantity supplied over percentage change in price.
(D) Percentage change in price over percentage change in quantity supplied.
A study shows that the coefficient of the cross price elasticity of Coke and Sprite is negative. This information indicates that Coke and Sprite are:
(A) Normal goods.
(B) Complementary goods.
(C) Substitute goods.
(D) Independent goods.
An indifference curve is a curve which shows the different combinations of two products that:
(A) Give a consumer equal marginal utilities.
(B) Give the customer equal total utilities.
(C) Cost a consumer equal amounts.
(D) Have the same prices.