Suppose MRS is not the same across all consumers. In this case, the economic outcome is not fully efficient because:
A) exchange is inefficient.
B) the use of inputs in production is inefficient.
C) the mix of outputs in inefficient.
D) none of the above
A
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For a perfectly competitive firm in the short run, if the following conditions are true, P = MR = MC > AC, then
A. the firm is maximizing profits and is making an economic profit. B. the firm is not maximizing profits but is making an economic profit. C. the firm is not maximizing profits and is not making an economic profit. D. the firm is maximizing profits and is suffering an economic loss.
The Robinson-Patman act
a. Is a part of the antitrust laws b. Makes it illegal to give a price discount on a good sold to another business c. Is also known as the Anti-Chain-store Act d. All of the above
Today, the number of commercial banks in the United States is about
a. 14,800. b. 21,000. c. 3,000. d. 5,600.
In the classical model where aggregate supply is vertical with respect to the price level, an increase (shift) in aggregate demand will yield
A. a relatively large increase in output. B. an equal change in output. C. a relatively large increase in the price level. D. a relatively small change in the price level.