According to the theory of the invisible hand, if buyers and sellers are free to pursue their own self-interest, the result often will be:
A. an efficient allocation of resources.
B. an equitable allocation of resources.
C. the exploitation of productive resources.
D. an incomplete allocation of resources.
Answer: A
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From an economic perspective, a student's decision to go to the movies instead of studying for a test indicates that in the student's thinking the marginal
A. benefit of studying is greater than the marginal benefit of going to the movies. B. cost of going to the movies is less than the marginal benefit of going to the movies. C. benefit of studying is greater than the marginal cost of studying. D. cost of going to the movies is greater than the marginal cost of studying.
A single-price monopoly's demand curve lies
A) below its marginal revenue curve. B) on top of its marginal revenue curve. C) above its marginal revenue curve. D) on top of its total revenue curve.
Interlocking directorates are illegal under the Clayton Act only when their effect is to lessen competition substantially
a. True b. False Indicate whether the statement is true or false
An unregulated natural monopolist would produce to the point at which
A) P = AC. B) MR = AC. C) MR = MC. D) P = MR.