Even though firms in competitive price-searcher markets do not produce at minimum ATC, competitive price-searcher markets may still be consistent with economic efficiency because
a. strict government regulations force the firms in these markets to keep their costs low.
b. they provide consumers with a greater diversity of products.
c. they encourage more advertising in both price-searcher and price-taker markets.
d. special legal protections for price searchers make it possible for them to more efficiently use resources.
B
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The above figure shows the marginal private cost curve, marginal social cost curve, and marginal social benefit curve for raising goats on a common pasture. The efficient outcome is raising ________
A) 0 goats B) 40 goats C) 50 goats D) 55 goats
Refer to Figure 11-6. In the figure above which letter represents the marginal cost curve?
A) A B) B C) C D) D
The Celler-Kefauver Act of 1950:
a. amended the Sherman Act to outlaw price fixing where the effect is to lessen competition b. created the Interstate Commerce Commission. c. prohibited conglomerate mergers where the effect is to lessen competition. d. prohibited a firm from acquiring the assets of another firm where the effect is to lessen competition.
Suppose the economy was in equilibrium, and the central bank increased the money supply by an expected amount equal to $100 billion. Monetarist theory would predict that the:
a. Long-term real GDP growth will rise. b. Long-term real GDP growth rate will fall. c. Long-term real GDP growth rate will remain unchanged. d. Long-term inflation rate will fall. e. The international value of the domestic currency will rise.