Macroeconomics Homework 3 Q&A

Macroeconomics Homework 3 Q&A  Which of the following is not a characteristic of a market? - answer-Markets are physical locations where trading occurs  Are all markets perfectly competitive? - answer-No, there are other market types where firms have considerable power to control the price.  If Jay's Fruit Stand is able to charge considerably higher prices than other fruit stands with the same produce, it is likely that... - answer-there are no fruit stands in close proximity to Jay's.  The concept of diminishing marginal benefits means that __________. - answer-each additional unit consumed is worth less to you than the previous one.  The concept of diminishing marginal benefits __________________for goods that you like a lot. - answer-holds true  Suppose you have a flashlight that takes three batteries to power it. If you buy the batteries one at a time, for which purchase will diminishing benefits set in? - answer-when you buy the fourth battery  Market demand is derived by __________. - answer-fixing the price and adding up the quantities that each buyer demands.  Does the shape of the market demand curve differ from the shape of an individual demand curve? - answer-No, they both tend to be downward sloping curves.  Which of the following is not one of the five major factors that shifts the demand curve when it changes? - answer-the price of the good itself...