In a perfectly competitive market, the market clearing price:
A) is always equal to the equilibrium price.
B) is unrelated to the equilibrium price.
C) is always lower than the equilibrium price.
D) is always higher than the equilibrium price.
A
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The outcome from a voucher scheme is efficient when the government makes the value of the voucher equal to ________
A) marginal external cost B) marginal external benefit C) external cost D) external benefit
The kinked demand curve is an explanation of sticky prices
a. True b. False Indicate whether the statement is true or false
If a newly elected government takes actions that makes its country's courts more efficient and less corrupt, then
a. producers will have greater confidence that they will benefit from their efforts. b. producers are likely to be more specialized. c. buyers and sellers will be more likely to honor contracts. d. All of the above are correct.
The situation of oligopoly suggests
A) many firms compete in an industry. B) mergers have not occurred. C) interdependence among firms. D) no barriers to entry exist.