As in all other competitive markets price equals marginal cost in a market for a scarce, non-renewable resource that is traded in a competitive market
Indicate whether the statement is true or false
False. Price exceeds marginal cost in those markets because owners of those resources receive a rent. It is a compensation for the ownership of this scarce resource.
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The principle of comparative advantage explains specialization and trade among countries but not among individuals.
Answer the following statement true (T) or false (F)
If Best Lights, Lights R Us, and Bright Lights are all competing in the light bulb market and Best Lights consistently is the first to change prices, Best Lights might be ________.
A) offering to be the price leader B) signaling to the other firms to consistently lower their prices C) signaling to the other firms to consistently raise their prices D) signaling to the other firms to consistently maintain their prices
Suppose a presidential candidate promises to increase the government budget surplus and claims that doing so will stop U.S. citizens from investing in foreign companies and increase the value of the dollar. Evaluate this candidate's promise
If a gamble has an expected value of zero, then it is termed a(n):
A. unfair gamble. B. fair gamble. C. better-than-fair gamble. D. zero gamble.