If an economy begins to use its resources less efficiently, it will move
A. to a point farther away from its ppf.
B. from a point along its ppf to a point outside its ppf.
C. to a point closer to its ppf.
D. from one point to another point along its ppf.
Answer: A
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What will be an ideal response?
A firm in monopolistic competition ________ influence its price and ________ influence the market average price
A) can; can B) can; cannot C) cannot; can D) cannot; cannot E) can; only in the short run can
As market price increases in the short run, a profit-maximizing firm in a perfectly competitive market will expand output along its:
a. marginal cost curve. b. average total cost curve. c. average variable cost curve. d. market demand curve.
What are the two possible causes of market failure?