Refer to Figure 26.5. Which firm is producing the allocatively efficient level of output and is using the least amount of economic resources to produce each unit of output?
A. All of the firms.
B. Firm D only.
C. Firm B only.
D. Firms B and D only.
Answer: C
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An open market operation occurs when ________ buys or sells securities ________
A) the Federal Reserve System; from or to the federal government B) the Federal Reserve System; in the open market C) a commercial bank; from or to the federal government D) a commercial bank; from or to the public
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A) applies to proprietorships only. B) applies to proprietorships and partnerships only. C) applies to corporations only. D) applies to all forms of business.
Assume the overall price level changes, ceteris paribus. Considering this, which of the following accurately explains a difference between the short-run aggregate supply (SRAS) curve and the long-run aggregate supply (LRAS) curve?
a. There is movement along the SRAS curve but not the LRAS curve. b. The quantity of real GDP supplied changes for the LRAS curve but not for the SRAS curve. c. Both the SRAS curve and the LRAS curve shift. d. The quantity of real GDP supplied changes for the SRAS curve but not for the LRAS curve.
Which of the following is NOT a basic feature of a monopolistically competitive industry?
A. Each firm in the industry produces a differentiated product. B. There is free entry and exit into the industry. C. Each firm owns a patent on its product. D. There are many buyers and sellers in the industry.