In the long run, a perfectly competitive industry is allocatively efficient because
a. the opportunity cost of resources needed to produce the last unit of output just equals the marginal value to consumers of the last unit
b. it maximizes producer surplus
c. consumer surplus could be larger if the price were lower
d. production occurs at the lowest average total cost
e. marginal costs are low
A
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If all producers in a market are cartel members, then the demand curve facing the cartel is
A) the market demand curve. B) horizontal. C) identical to the demand curve in the dominant firm model. D) identical to the monopolist's demand curve.
Suppose an increase in investment spending results in an increase in equilibrium real GDP and a rise in the equilibrium price level. This implies that the aggregate supply curve for this economy is vertical
a. True b. False Indicate whether the statement is true or false
Scarcity raises both price and marginal utility but generally reduces total utility
a. True b. False Indicate whether the statement is true or false
A single seller dominates the market for robotic mowers and charges a price above the competitive price. Some potential consumers do not buy mowers they would have bought at a lower price. What economic condition is represented by this scenario?
a. inventory b. externality c. efficiency d. monopoly