A perfectly competitive system results in an efficient allocation of resources among firms and an equal distribution of final products among households.
Answer the following statement true (T) or false (F)
False
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The fraction of an industry's sales that are accounted for by the largest firms is called
A) the four-firm oligopoly ratio. B) the four-firm competition ratio. C) the four-firm industry ratio. D) the four-firm concentration ratio.
A perfectly competitive firm discovers that its MRPL divided by the wage equals 1.25. The firm should
A) check the MRP of the other inputs and divide them by their prices. If they are all equal to 1.25 it is maximizing profits. B) hire more labor. C) purchase more capital. D) try to pay a lower wage rate.
Actions by the Second Bank of the United States:
a. reduced the discount rate on state bank notes. b. increased the discount rate on state bank notes. c. created inflation. d. effectively ended the use of state bank notes.
Adam Smith believed that monopoly is the most efficient market structure
a. True b. False Indicate whether the statement is true or false