Is a coordination failure a type of market failure? Explain
What will be an ideal response?
Yes, because an equilibrium can be reached that is not the true social equilibrium.
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Diseconomies of scale is
A) a short-run phenomenon. B) the result of decreasing marginal returns. C) a long-run phenomenon. D) the result of increasing marginal returns. E) possible only when the firm's plant size is fixed.
What is special about healthcare that makes it a good provided by the government?
What will be an ideal response?
In practice, money growth targeting was
A) a good idea. B) a policy introduced in the U.S. in the 1970s, which continues to the present. C) better than interest rate targeting. D) a failure.
As a result of pure free trade in a commodity, the
A. price of the commodity must be the same in all countries. B. total quantity imported will exceed the total quantity exported. C. price of the commodity will be higher in the producing country. D. price of the commodity will be lower in the producing country.