If resource prices are fixed and the product selling price rises, then
What will be an ideal response?
profits will increase.
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Suppose the optimal amount of X is 100 units and that the market provides 123 units. This situation is descriptive of
A. externality provision. B. market failure. C. asymmetric information. D. a public goods problem. E. the free-rider dilemma.
When information asymmetry exists in a market, government:
A. sometimes steps in to try to correct it. B. only steps in to correct it if it can ensure complete information. C. never steps in to try to correct it. D. always steps in to try to correct it.
If a firm produces components of its goods and services in other countries, it is said to be outsourcing
Indicate whether the statement is true or false
Technical efficiency
A) ignores the values of the chooser. B) is a necessary precondition for the attainment of economic efficiency. C) is always attained if economic efficiency is achieved. D) is attained whenever the ratio of physical output to physical input is greater than unity. E) is easier to achieve than economic efficiency.