A firm that is operating at peak efficiency is
A. making a profit in the short run.
B. taking a loss in the short run.
C. operating at the minimum point of its ATC curve.
D. taking a loss in the long run.
C. operating at the minimum point of its ATC curve.
You might also like to view...
Public policy can help achieve more efficient use of an economy's resources by eliminating all monopolies
a. True b. False
Unintended consequences are the ______ effects of an action.
a. purposeful b. unimportant c. primary d. secondary
Suppose that there are two types of cars, good and bad. The qualities of cars are not observable but are known to the sellers. Risk-neutral buyers and sellers have their own valuation of these two types of cars as follows:Types of CarsBuyer's ValuationSeller's ValuationGood (50% probability)5,0004,500Bad (50% probability)3,0002,500Suppose that both buyers and sellers observe the quality. What happens?
A. Only good cars are traded. B. Only bad cars are traded. C. Neither good nor bad cars are traded. D. Both good and bad cars are traded.
Suppose a union negotiates for its members a wage that is above the market-clearing wage. What problems does the union have to solve now? Explain
What will be an ideal response?