Absent market imperfections, when firms ________ profits and households ________ utility Pareto optimality has been obtained.
A. maximize; maximize
B. minimize; maximize
C. minimize; minimize
D. maximize; minimize
Answer: A
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The aggregate production function is the relationship between the
a. total cost of labor and the quantity of output in the economy b. total cost of labor and the total real cost of inputs c. quantity of labor employed in the economy and the total quantity of output produced d. cost of labor and the supply of labor e. quantity of labor and the quantity of capital
The Condorcet paradox is a situation in which the preferences of each individual member of a group are ________, and the collective preferences of the group are ________.
A. transitive; not transitive B. not transitive; not transitive C. transitive; transitive D. not transitive; transitive
Figure 11.1If Figure 11.1 depicts the current situation for a monopolistically competitive firm, then in the long run we expect:
A. the firm to charge a price higher than P1. B. the firm to produce and sell more than Q1. C. the average costs of production to decrease below AC1. D. the firm to charge a price lower than P1.
Discuss research on the role of banks and other financial institutions in the intermediation of funds between lenders and borrowers
What will be an ideal response?