The allocation of resources is efficient under an idealized free market system.
Answer the following statement true (T) or false (F)
True
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A cost that has already been incurred and cannot be recovered is known as a(n)_____ a. sunk cost.
b. opportunity cost. c. direct cost. d. implicit cost. e. explicit cost.
What happens to the amount of funds supplied to the loanable funds market when the interest rate decreases?
a) The amount of loanable funds supplied decreases. b) The amount of loanable funds supplied increases. c) The amount of loanable funds supplied stays the same. d) The amount of loanable funds supplied falls to zero when the interest rate decreases
Which of the following items is excluded from GDP?
A. services a barber performs in repairing his own hair-cutting equipment B. production and sale of hair-cutting equipment C. the construction of a new barbershop D. services a barber performs in cutting hair
In the above figure, at the profit-maximizing rate of production for the perfectly competitive firm, average total cost is
A. $7. B. $70. C. $10. D. $3.