economics 211 final examination fall 2003 3 hours 200 points circle the name of your instructor soligo nal gilbert nesbitt wu vasudev ______________________________________________ pledge ____________________________________________________________________ _____________________________________________________________________________ _______________________________________________________________________________ i multiple choice correct answer each 18 total 1 for a market to be perfectly competitive it must true that transaction costs are low b there is free entry and exit firms from c buyers sellers know prices charged by d consumers believe all in sell identical goods e above 2 chris consumes twice as much fish beef although two products at same price per pound under these circumstances we can conclude equilibrium additional satisfaction consuming an extra greater than less impossible tell since don t exactly how demand curve bananas elastic supply
