A competitive market maximizes social welfare because in a competitive market,

A) profits are zero.
B) price equals marginal cost of the last unit produced.
C) price equals average cost of the last unit produced.
D) there is free entry and exit.


B

Economics

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Economics

If the Fed responds to an increase in government spending with the goal of stable prices and output, which of the following would be the result?

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Economics

Which of the following statements is correct?

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Economics

Which of the following would not occur as a result of a monopolistically competitive firm suffering a short-run economic loss?

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Economics