Which of the following statements does NOT describe a situation of perfect competition?
The firm faces an infinitely elastic demand curve
The firm makes no pure profit in the short run
The price does not change with changes in the output level of the firm
There is freedom of entry into and exit from the industry
The firm can sell all it produces at the market price
Correct answer is B
No explanation has been provided for this answer.
If a commodity has many substitutes, it is most likely that?
The demand curve is fairly inelastic
The demand curve is fairly elastic
The demand curve is parallel to the quantity axis
The demand curve is positively sloped
The price of the commodity is too high
Correct answer is B
No explanation has been provided for this answer.
The elasticity of demand is given by
The percentage change in quantity demanded divided by the corresponding percentage change in price
The percentage change in price divided by the corresponding percentage change in quantity demanded
The percentage change in quantity demanded divided by the corresponding price
The percentage change in price divided by the corresponding quantity demanded
None of the above
Correct answer is A
No explanation has been provided for this answer.
The study of money and banking
The study of markets and prices
The study of production and distribution
The study of human behaviour in the allocation of scarce resource
The study of the employment of labour, land, and capital
Correct answer is D
No explanation has been provided for this answer.
Industrialization
Export-promotion
Import-substitution
Export--substitution
Import-expansion
Correct answer is C
No explanation has been provided for this answer.