Author Question: In a pure exchange market: a. resources are owned only by the government. b. resources are owned ... (Read 88 times)

bb · **on:** Jun 30, 2018

In a pure exchange market:
a. resources are owned only by the government.
b. resources are owned by few people.
c. people trade money for goods that are produced in the domestic economy.
d. there is no production and people trade money for goods that already exist.

Question 2

In a perfectly competitive industry, the price of good A is 2 . If a firm in this industry decides to increase its price to 2.50, it will:
a. realize an increase in profit of 0.50 per unit output.
b. be able to increase the quantity sold of good A.
c. be unable to sell any quantity of good A that is produced.
d. lose some of its customers in the market.
e. experience a decrease in profit of 0.50 per unit output.