When a perfectly competitive, well-functioning market is in equilibrium:
A. deadweight loss is zero.
B. total surplus is maximized.
C. the market is efficient.
D. All of these are true.
Answer: D
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In the figure above, with international trade U.S. companies buy ________ helicopters per year
A) 240 B) 480 C) 720 D) 360
A firm has positive fixed cost and positive variable cost. At its current level of output, marginal cost equals average cost. The firm must
a. not be producing at its profit-maximizing level of output. b. be producing the quantity that minimizes average cost. c. be operating at a point at which total variable cost equals total fixed cost. d. be earning negative profit.
When a credit card company offers different services with its card, like travel insurance for air travel tickets purchased with the credit card or product insurance for items purchased with the card, the credit card company is trying to:
A. create a barrier to entry for competing firms. B. create a perfectly competitive market in which to sell its credit card. C. differentiate its credit card from those offered by other companies. D. shift the demand curve for competing firms to the right.
The public debt can be thought of as
A. the total amount in taxes consumers pay to the government. B. the total amount consumers owe on their credit cards. C. the total amount the government spends for goods and services. D. accumulated budget deficits and surpluses.