A voluntary exchange between Mike (the purchaser) and Wayne (the seller) occurs because
A. Mike stands to gain and Wayne to lose.
B. Mike stands to lose and Wayne to gain.
C. they had no choice.
D. they both gain from the transaction.
Answer: D
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If firms in a competitive market are NOT identical, then the long-run market supply curve will be
A) horizontal. B) upward sloping. C) downward sloping. D) undetermined.
The inclusion of external benefits in the decision making process determining equilibrium price and quantity leads to
A) lower priced items and increased quantity. B) lower priced items and a decline in quantity. C) higher priced items and increased quantity. D) higher priced items and a decline in quantity.
Refer to the above graphs. Which statement is true?
A. The firm is experiencing economic losses. B. The firm is breaking even. C. The firm will increase production. D. The firm is making economic profit.
Equity and efficiency can be achieved simultaneously through competition
Indicate whether the statement is true or false