If a firm in a perfectly competitive market sells 100 units of output and total revenues are $500, which of the following statements are true? (i) Marginal revenue equals $5. (ii) Average revenue equals $5. (iii) Price equals $5
a. (i) only
b. (iii) only
c. (i) and (ii) only
d. (i), (ii), and (iii)
d
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What are the costs associated with government intervention in an economic system? Given that there are costs involved with government intervention in an economy, why do governments still choose to intervene in markets?
What will be an ideal response?
The Coase Theorem suggests that under its assumption, the efficient solution to an externality problem: a. depends on who owns property rights to the resources
b. is enhanced by government involvement in the negotiations. c. can be enhanced through the use of taxes. d. does not depend on the distribution of property rights.
The relative prices of wool, cocoa, aluminum, rice, cotton, and sugar declined by more than half during the 20th century.
Answer the following statement true (T) or false (F)
Even in a democratic government, elected officials may end up pursuing policies that go against the preferences of the people due to the following reasons, except:
A. Special-interest effect B. The invisible hand of the market C. Limited and bundled choice in elections D. Majority voting system