A competitive equilibrium has all of the following properties except
A) MPN = slope of PFF.
B) MRS1,C = MRT1,C.
C) MRT1,C = MPN.
D) MPN = w.
A
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If a firm sells to two distinct identifiable markets and resale is impossible, why is price discrimination more profitable than setting a single price?
What will be an ideal response?
Full employment is considered a major economic goal because: a. specialization is not possible without full employment
b. economic growth can only occur when there is full employment. c. the opportunity cost of unemployment is lost production. d. profit maximization of firms can only occur when there is full employment. e. inflation will be lower when full employment is achieved.
The tournament effect
A) may help explain why CEO are highly paid. B) why most golfers are below average. C) explains why the behavior of total revenue often patterns lottery sales. D) may help explain why CEOs are generally viewed as dishonest by the public.
Which of the following will most likely cause an outward shift in the production possibilities curve?
a. a reduction in the man-made productive resources available to the economy as the result of a decline in investment b. an increase in government payments to farmers for taking land out of production c. an increase from 40 to 50 hours in the average number of hours worked per week d. None of the above would cause an outward shift in the production possibilities curve.