Describe the choices that producers make and explain why producers are efficient on the market supply curve
What will be an ideal response?
Competitive firms maximize profit. We derive the firm's supply curve by finding the profit-maximizing quantity at each price, which means that firms are efficient and get the most value out of their resources at all points along their supply curve.
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The Coase theorem asserts that, in the presence of externalities,
a. private economic actors sometimes can reach a bargain that produces an efficient outcome. b. private economic actors always can reach a bargain that makes everyone better off. c. private solutions cannot be very effective. d. corrective taxes cannot be very effective.
Decreasing the reserve requirement ratio is
A) a contractionary policy because it lowers the amount of total reserves in the banking system. B) a contractionary policy because it lowers the amount of excess reserves in the banking system. C) an expansionary policy because it raises the amount of excess reserves in the banking system. D) an expansionary policy because it raises the amount of required reserves in the banking system.
To calculate personal savings, you would need information on all of the following except:
a. personal disposable income. b. personal consumption expenditures. c. interest paid to business. d. government expenditure. e. personal transfer payments to foreigners.
Union membership peaked in the
A. mid-1930s. B. late-1950s. C. late-1970s. D. early 1980s.