According to the Fundamental Theorems of Welfare Economics, the competitive equilibrium is dependent on the relative bargaining powers of the parties trading
Indicate whether the statement is true or false
False. The competitive equilibrium assumes that all parties are price takers. The prices and quantities are determined by the endowment point and the MRS's.
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The Fed has the greatest control over which of the following?
A) the money multiplier B) discount loans C) the amount of excess reserves D) the nonborrowed monetary base
Consider an apple orchard owner deciding how to incentivize his fruit pickers to get them to pick more apples he should:
a. To pay the pickers per pound of apples picked b. To pay the pickers an hourly rate c. To pay the pickers an hourly rate plus a bonus d. To not pay the pickers
Suppose that price is below the minimum average total cost but above the minimum average variable cost. In the short run, a firm that is a price taker would:
A. immediately shut down and get out of the industry. B. continue to produce a quantity such that marginal revenue equals marginal cost. C. shut down temporarily, in hopes of restarting in the near future. D. cut price and expand output in hopes of achieving economies of scale
Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y ? L and this person has no non-labor income. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply when the person wins a lottery prize of $100 per day
What will be an ideal response?