If markets are perfectly competitive, then the production of goods

A. will require government intervention.
B. will use the least costly combination of resources.
C. will always lead to business failures.
D. will occur at an average total cost value that is above the minimum.


Answer: B

Economics

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Pablo must choose among options A, B, and C. Option A gives him $10,000 for sure. Option B gives him $4,000 with probability 0.5 or $16,000 with probability 0.5. Option C gives him $8,000 with probability 0.5 or $12,000 with probability 0.5

If he receives diminishing marginal utility from wealth, Pablo will A) choose option A. B) choose option B. C) choose option C. D) be indifferent among options A, B, and C.

Economics

Consider the market for wheat which is a perfectly competitive market. Is the market demand curve the same as the demand curve facing an individual producer? If not, explain how and why they are different? Illustrate your answer graphically

What will be an ideal response?

Economics

In the antebellum period, U.S. cotton production

a. moved inland and westward following the invention of the cotton gin. b. was unable to meet the demand of the growing U.S. textile industry. c. was concentrated on small farms of less than 100 acres. d. faced declining world demand for most of the antebellum period.

Economics

A sole proprietor has limited liability and cannot be forced to pay its creditors from his/her personal resources

Indicate whether the statement is true or false

Economics