X-inefficiency refers to the situation in which:
A) highly competitive firms have less incentive to minimize their costs of production than other firms because the highly competitive firms have almost no chance to earn above-average profits.
B) firms are unable to minimize their costs of production because there is no potential for input substitution.
C) firms that use labor-intensive production methods tend to be less efficient than firms that use capital-intensive production methods.
D) firms with market power have less incentive to minimize their costs of production than more competitive firms.
D
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The basic formula for the price elasticity of demand is
A. absolute decline in price/absolute increase in quantity demanded. B. percentage change in price/percentage change in quantity demanded. C. absolute decline in quantity demanded/absolute increase in price. D. percentage change in quantity demanded/percentage change in price.
If a perfectly competitive firm is producing the short-run profit-maximizing quantity and is earning positive economic profits, the firm should anticipate ________.
A) the market equilibrium price to increase B) the market equilibrium price to decrease C) earning economic profits indefinitely D) the market supply to decrease
If the expansion of output in an industry leads to unchanged resource prices, the industry is most likely to be
a. a decreasing cost industry. b. an increasing cost industry. c. a constant cost industry. d. an industry characterized by economies of scale.
The Board of Governors consists of ________ governors appointed for staggered ________ terms.
A. 7; 14-year B. 7; 12-year C. 5; 14-year D. 5; 12-year