A fair price gets its name because it is the price at which
a. society values the marginal product in proportion to the cost of the resources used in production
b. the marginal benefit of the last unit consumed is equal to the marginal value of the resources used to produce it
c. the monopolist would make normal profit in a competitive market
d. resources are distributed equitably
e. normal profit would be made in any other market
C
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There are significant differences in the general character of cost structures among various types of firms such as fishing, farming, and automobile manufacturing
Indicate whether the statement is true or false
Most economists today recognize that a short-run macro failure is possible.
Answer the following statement true (T) or false (F)
"NAFTA" stands for:
A. North African Free Trade Area. B. North American Free Trade Agreement. C. North Asian Free Trade Agreement. D. New Zealand-Australia Free Trade Agreement.
Which of the following would not limit the extent of a firm's vertical integration?
a. the managers' bounded rationality b. a large minimum efficient scale of producing inputs relative to the firm's input requirements c. the fact that the quality of inputs is easily determined at the time of purchase d. many interchangeable suppliers of the firm's inputs e. high transaction costs of contracting with resource suppliers