Suppose you hear of a great deal on a used car and wonder, "Why is the price so low?" This might be an instance of ________
A) tyranny of collateral
B) adverse selection
C) the free rider problem
D) moral hazard
B
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The feature that distinguishes perfect competition from monopolistic competition is that perfectly competitive firms are
A. unable to differentiate their products. B. price takers. C. large relative to the market. D. able to block the entry of other firms.
Refer to the diagram, representing Slippery Slope Oil Company. What price of oil would make 15 million barrels the optimal quantity to extract and sell this year?
A. $50.
B. $70.
C. $90.
D. $110.
An economy is an organization that produces goods and services and then allocates those goods and services to its members
Indicate whether the statement is true or false
Which of the following are the rules for finding the point of allocative efficiency?
A) Produce on the PPF and then produce where the marginal benefit and marginal cost are as large as possible. B) Produce on the PPF and then produce where marginal benefit equals marginal cost. C) Produce on the PPF and then produce where marginal benefit and marginal cost are constant. D) Produce on the PPF and then produce where the marginal benefit exceeds marginal cost by as much as possible. E) Produce anywhere on the PPF.