Perfectly competitive firms produce up to the point where the price of the good equals the marginal cost of producing the last unit. This condition is referred to as
A) productive efficiency.
B) constant returns to scale.
C) allocative efficiency.
D) perfectly competitive efficiency.
Answer: C
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Refer to the scenario above. If Maria's opportunity cost of time increases to $80 per hour, the cost involved in taking the train is:
A) $320. B) $720. C) $800. D) $970.
Suppose an oligopolistic firm raises the price of its output. Demand for the firm's output will be relatively price ________ if the other dominant firms in the market ________
A) elastic; do not raise price B) unit elastic; do not raise price C) inelastic; also raise price D) cannot be determined
In terms of industrial policy, clusters refer to:
A. networks of interdependent firms, universities, and businesses that focus on production of a specific type of good. B. firms in an economy that are so interconnected, when one fails, they all fail. C. the industries supported in a country practicing export-led growth policy. D. the industries supported in a country practicing import substitution policy.
Deflation can render monetary policy powerless
a. True b. False