In the private sector where firms compete for profit, if a firm is inefficient, ________. In the public sector, if a government bureau is producing a necessary service and is doing so inefficiently, ________.
A. it does not need to worry about customers; it does not need to worry about customers
B. the market will drive it out of business; it does not need to worry about customers
C. it does not need to worry about customers; the market will drive it out of business
D. the market will drive it out of business; the market will drive it out of business
Answer: B
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If the US interest rate is 4% per year and the Mexico interest rate is 9% per year, which of the following is true:
a. The dollar will depreciate 5% in one year. b. The peso will appreciate 9% in one year. c. The peso will depreciate 5% in one year. d. The dollar will appreciate 9% in one year.
If the government collects $10,000 in tax revenue and turns around and spends $10,000 to build a new road, and the MPC is 0.5, national income
a. is unchanged b. increases by $5,000 c. increases by $10,000 d. increases by $15,000 e. increases by $20,000
Which of the following correctly explains why sellers in a perfectly competitive market are price-takers?
a. There are few sellers, and so they easily agree to charge a uniform price to their customers. b. There are many small sellers, and so the market process generates an equilibrium price that cannot be influenced by any one seller. c. Sellers in a competitive market have the power to influence price by colluding with one another and using quotas to limit overall market output and thus raise price. d. Individual buyers in a competitive market have the power to influence price, and thus can impose prices and other conditions on powerless sellers.
Suppose that Figure 10.4 shows a monopolist's demand curve, marginal revenue, and its costs. At the profit-maximizing output level, the monopolist's profit would be:
A. $730. B. $570. C. $320. D. $150.