Markets provide the efficient amount of a good or service when
a. externalities are present.
b. monopoly exists.
c. public goods are present.
d. competition is present and externalities and public goods are absent.
D
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Refer to the scenario above. Jacob should submit a bid of ________
A) $500 B) $400 C) $300 D) $225
Perfectly competitive industries tend to produce low-priced, low-technology products
Indicate whether the statement is true or false
Which of the following is true with regard to the supply of money?
A) an open market sale of government securities will increase liquidity B) an open market purchase of government securities will decrease liquidity C) liquidity and the money supply are directly related D) all of the above E) none of the above
A profit-maximizing entrepreneur will produce and sell an additional unit of output as long as
a. it lowers the firm's unit costs. b. it lowers the firm's marginal cost. c. it adds more to revenue than it adds to cost. d. there is additional plant capacity to produce.