An optimal decision is one that chooses
a. the most desirable alternative among the possibilities permitted by the resources available.
b. the lowest cost method of meeting goals, without regard to quality or any other feature.
c. among various possible goals and offends no one, so that all are equally happy.
d. among equally important goals, and thereby avoids the "indispensable necessity" syndrome.
e. among possible goals in such a way that spends as little money as possible.
a
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In a market economy, what provides potential investors with reliable information about the financial performance of a firm?
A) contracts B) insurance C) patents D) accounting rules
Why can a monopoly make an economic profit in the long run?
A) because there are close substitutes for the firm's product B) because the firm is protected by barriers to entry C) because the firm produces where MR=MC D) because P > MR E) ALL of the above are reasons why a monopoly can make an economic profit in the long run.
Which statement best defines efficiency?
a. when it becomes possible to benefit at least one party without imposing costs on others b. when it is impossible to improve the situation of one party without imposing a cost on another c. the amount that a seller is paid for a good minus the seller’s actual cost d. the amount that individuals would have been willing to pay, minus the amount that they actually paid
Which of the following is NOT a characteristic of firms in a monopolistically competitive market?
A) advertising B) differentiated products C) ease of entry and exit D) existence of significant economies of scale