Which of the following is true under conditions of perfect competition?
A. The market demand curve is perfectly elastic.
B. No single firm can influence the market price.
C. There are differentiated products.
D. Each individual firm has the ability to set its own price.
Answer: B
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The above figure shows the marginal social benefit and marginal social cost curves of coffee in the nation of Kaffenia. There is no external cost
What is the marginal cost to the economy of Kaffenia of producing the four hundredth pound of coffee each day? A) $.50 per pound B) $1.00 per pound C) $2.00 per pound D) $4.00 per pound
The utility-maximization condition for two goods is achieved by equating the:
a. prices of both goods b. marginal utilities of both goods c. ratios of total utility to price of both goods d. ratios of marginal utility to price of both goods
Innovation lagged in the centrally planned economies because:
A. there was too much domestic business competition.
B. there was too much competition from foreign firms.
C. enterprises resisted innovation in fear that their production targets would be raised.
D. exports had to equal imports for the plan to work.
What is former World Bank economist William Easterly's explanation for why developing countries fail to grow even with the aid of international agencies like the World Bank?
What will be an ideal response?