At the competitive equilibrium quantity supplied equals quantity demanded in all markets

Indicate whether the statement is true or false


True . When the MRS = MRT = ratio of prices, the optimal product mix is produced efficiently and firms sell at marginal cost.

Economics

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If, as price increases by 10 percent, total revenue decreases by 10 percent demand is

a. elastic. b. unit elastic. c. inelastic. d. perfectly inelastic.

Economics

A country announces capital outflow controls that will take effect in three months. This announcement will likely:

A. result in a significant appreciation of the country's currency. B. stabilize the country's exchange rate. C. result in a significant depreciation in the country's currency. D. attract significant amounts of foreign investors.

Economics

If the reserve ratio is 20 percent, how much money can be created from $100 of reserves? Show your work

Economics

Which of the following provides the clearest evidence that a business firm is using resources productively?

a. economic profit b. economic loss c. high wages paid to workers d. low wages paid to workers

Economics