In a price-taker market, economic losses indicate that
a. some firms are using unfair tactics to harm others.
b. some firms have miscalculated, producing goods that are less valuable than the resources used to make them.
c. the situation is normal and firms need to make no adjustments.
d. the firms in the industry are not minimizing their cost; they should expand output in order to fully realize the economies of scale in the industry.
B
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If entry into an industry was very easy, the four firm concentration ratio would not be a very useful index of the competitiveness in that industry
a. True b. False Indicate whether the statement is true or false
If the consumption of a good yields external benefits, then
A. The social demand is greater than the market demand. B. The social demand is less than the market demand. C. The social demand is equal to the market demand. D. There is neither social demand nor market demand for the good.
A salesperson who uses a cash register to record over-the-counter sales should, at the end of each work day, turn over to a supervisor the cash register tape and a corresponding amount of cash.
a. true b. false
Suppose that the supply of gasoline increases. Price will ________ and consumer surplus will ________.
A. increase; increase B. increase; decrease C. decrease; increase D. decrease; decrease