Assuming Cournot behavior, what happens to the market output, the price of the output, and each firm's output as the number of firms in a market increases?
What will be an ideal response?
As the number of firms increases, price declines, and each firm produces less, but total market output increases.
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Comment on the following statement. "Taxing externality-producing activities may not eliminate damages."
What will be an ideal response?
As a result of the Great Recession, most financial markets hit bottom around
A. September 2008. B. March 2009. C. September 2009. D. March 2010.
If net foreign factor income is zero and there are no statistical discrepancies, the sum of national income and the consumption of fixed capital equals:
A. disposable income. B. personal income. C. net domestic product. D. gross domestic product.
In the presence of market failure, government involvement will lead to efficient outcomes.
Answer the following statement true (T) or false (F)