When a purely competitive market is at its long-run equilibrium, then all of the following are true, except:
A. Price equals marginal cost, and they are equal to the lowest attainable average cost of production
B. Marginal benefit of the last unit of the product equals the marginal cost of producing that unit
C. Maximum willingness of buyers to pay for the last unit of the product equals the minimum acceptable price for the seller of that unit
D. Combined amount of consumer and producer surpluses is at its minimum possible
D. Combined amount of consumer and producer surpluses is at its minimum possible
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The problem causing most recessions is too little
A) spending. B) taxes. C) money (currency plus checking accounts). D) unemployment.
Refer to Figure 11-13. The lines shown in the diagram are isocost lines. Which of the following shows a decrease in the price of capital while the price of labor remains unchanged?
A) the movement from BF to AF B) the movement from BF to BD C) the movement from AF to BF D) the movement from BF to CE
A discovery that increases wheat yields per acre helps farmers by increasing both supply and total revenues
a. True b. False Indicate whether the statement is true or false
Adverse selection:
A. refers to the tendency for people with higher risk to be drawn toward insurance. B. can result in failure to complete transactions that would have been possible if both sides had the same information. C. occurs when buyers and sellers have different information about the riskiness of a situation. D. All of these statements are true.