Deviations from the perfectly competitive market can lead to
A. inefficiently high production costs.
B. higher prices and smaller outputs.
C. less efficient resource allocation.
D. All of the responses are correct.
Answer: D
You might also like to view...
One Guy's Pizza advertising expenditures are $1,200 and sales are $30,000. When the advertising expenditure increases to $1,400, pizza sales increase to $32,000. The arc advertising elasticity of demand is approximately ________
A) 0 B) 0.1 C) 0.4 D) 2.5 E) 12.5
The curve formed by plotting the value of the marginal product for workers against quantity of labor is:
A. downward sloping. B. upward sloping. C. perfectly elastic, for competitive firms. D. perfectly inelastic.
Assume a monopolist's marginal cost and marginal revenue curves intersect and the demand curve passes above its average total cost curve. The firm will:
a. make an economic profit. b. stay in operation in the short run, but shut down in the long run. c. shut down in the short run. d. lower the price.
If an inexpensive alternative to oil were found, the price of oil adjusted for inflation
a. would decline as the alternative would reduce the demand for oil. b. would decline as the alternative would reduce the supply of oil. c. would increase as the alternative would increase the demand for oil. d. would increase as the alternative would increase the supply of oil.